Research on the Construction Path of Power Financial Market in China under the New Situation of Power Reform

In China, with the deepening of power reform and construction of the electricity spot market, urgent and realistic demands have been put forward for the construction of power financial trading market. In this paper, based on the background of power market construction and current power financial transaction practice, the significance of introducing power financial transaction is analysed and the path for construction of power financial transaction market in China is proposed.

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Research and Analysis Based on Electricity Spot Market Construction in Northern China

E3S Web of Conferences ◽

10.1051/e3sconf/202018501029 ◽

2020 ◽

Vol 185 ◽

pp. 01029

Author(s):

Sen Wang ◽

Shuai Zhao ◽

Liansheng Zhou ◽

Zhiyong Gan ◽

Changzhi Zhang ◽

...

Keyword(s):

Power System ◽

Electricity Market ◽

Northern China ◽

Spot Market ◽

Market Mechanism ◽

Heating Unit ◽

Operation Conditions ◽

Electricity Spot Market ◽

Market Construction ◽

Heating Mode

Successive development of China’s power spot market has subjected the operation and dispatching mode of the existing power system to an increasingly greater influence imposed by the electricity market mechanism. In China’s northern provinces requiring winter heating, it is a huge challenge to the trading mechanism of power spot market to simultaneously guarantee the safe operation of power system and the heating mode of heating unit. To address this issue, this paper analyses the operation conditions and problems of power spot market during winter heating in northern China. Based on the analysis of the power spot market in a northern city, This paper analyzes some crucial problems in the construction of spot market and sums up policy advice for the further construction of spot market adapted to direct electricity purchase by large consumers in northern China.

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Bidding strategy of power generation companies in the centralized electricity spot market

E3S Web of Conferences ◽

10.1051/e3sconf/202016506045 ◽

2020 ◽

Vol 165 ◽

pp. 06045

Author(s):

Jinshan Han ◽

Pengfei Li ◽

Tingting Zhang ◽

Lingxiang Wang ◽

Dunnan Liu

Keyword(s):

Power Generation ◽

Power Market ◽

Spot Market ◽

Market Reform ◽

Bidding Strategy ◽

Spot Price ◽

Price Fluctuations ◽

Bidding Strategies ◽

Risk Return ◽

Electricity Spot Market

With the development of China’s power market reform, the spot market has gradually opened up. The spot market is characterized by volatility and uncertainty. Generators urgently need to manage spot market trading income and risks to avoid the risk of spot price fluctuations. This paper studies the bidding strategies of power generation companies in the concentrated spot market, proposes a risk-return coordination method based on the probability of winning bids and conducts case verification. The example shows that the method can assist the power generation companies to formulate bidding strategies.

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Analysis of Market Equilibrium Based on Co-evolution in Electricity Spot Market

E3S Web of Conferences ◽

10.1051/e3sconf/202021802024 ◽

2020 ◽

Vol 218 ◽

pp. 02024

Author(s):

Guosheng Hu ◽

Hechun Wang ◽

Kun Fan ◽

Haoyong Chen ◽

Shengsheng Deng ◽

...

Keyword(s):

Nash Equilibrium ◽

Electricity Market ◽

Lower Layer ◽

Market Equilibrium ◽

Power Market ◽

Spot Market ◽

Future Trend ◽

Level Model ◽

Electricity Spot Market ◽

Security Constraint

By solving the Nash equilibrium of the electricity market, it is possible to observe the game process of market entities under different boundary conditions and predict the future trend of the market. In order to study the state of market equilibrium in the power spot market, firstly we constructed a bi-level equilibrium model. The upper layer is the problem of maximizing the profit of power generation enterprises under the bidding constraint, and the lower layer is the security constraint economic dispatch with the goal of maximizing social welfare. The traditional solution transforms the bi-level model into MPEC or EPEC through optimal conditions, but they are generally non-convex and difficult to solve. In this regard, the coevolution algorithm is used to solve the bi-level model, and it is proved that the result of co-evolution under a limited strategy set is equivalent to the Nash equilibrium. Finally, an example of PJM 5 machine with 5 nodes is used to analyse the power market equilibrium in the spot market.

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A Two-Stage Dispatch Mechanism for Virtual Power Plant Utilizing the CVaR Theory in the Electricity Spot Market

Energies ◽

10.3390/en12173402 ◽

2019 ◽

Vol 12 (17) ◽

pp. 3402 ◽

Cited By ~ 1

Author(s):

Rui Gao ◽

Hongxia Guo ◽

Ruihong Zhang ◽

Tian Mao ◽

Qianyao Xu ◽

...

Keyword(s):

Power Plant ◽

Demand Response ◽

Market Price ◽

Power Market ◽

Spot Market ◽

Virtual Power ◽

Two Stage ◽

Virtual Power Plant ◽

Electricity Spot Market ◽

The Impact

The electricity spot market is now being implemented in China. Demand response, as a kind of flexible resource, is also being studied and explored for the constructed power market. Among the many demand response applications, the virtual power plant (VPP) as an aggregator of distributed energy resources (DERs), receives ever-increasing attention. However, the participation manner and related impacts of the VPP to the electricity spot market are still unknown within the current power market rules. Under this background, obeying the present trading rules of China’s electricity spot market, a two-stage dispatching model with optimized bidding and operating strategy in the day-ahead (DA) and real-time (RT) market for the VPP is proposed. In the designed model, the conditional risk value (CVaR) is adopted to address the risk encountered by the uncertainty of the electricity spot market price. The impact of the user-side over-deviated revenue mechanism (UORM) of the China spot market on the income of the VPP in the DA and RT market is also analyzed. For a full evaluation, different coefficients for the influence of DA and RT risk, UORM, and energy storage system (ESS) are tested to investigate their respective impacts on the revenue of the VPP. The simulation cases prove that the proposed method is helpful for the VPP to optimize DERs’ output in the electricity spot market according to its own risk preference.

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