scholarly journals Optimal Electricity Allocation Model Under China's Planning-Market Double-Track Mechanism Considering Bidding Game of Generation Companies

2021 ◽  
Vol 9 ◽  
Author(s):  
Jinrui Cui ◽  
Yating Li ◽  
Chuan He ◽  
Zhi Zhang ◽  
Haichao Wang ◽  
...  
Keyword(s):  
Market Power ◽  
Electricity Market ◽  
Demand Curve ◽  
Market Price ◽  
Smooth Transition ◽  
Bidding Strategy ◽  
Allocation Model ◽  
Bidding Game ◽  
Double Track ◽  
The Impact

In China, under the planning-market double-track mechanism implemented on the generation side of electricity, unreasonable market-oriented power generation proportion may lead to unnecessary vicious competition and market price changes, and it is against the will of power exchange (PX). Given this background, in this study, a bi-level model for planning-market electricity allocation that considers the bidding game of generation companies is proposed for a smooth transition of power system reform. In the upper level of the model, the proportion of planned electricity is optimized by PX to minimize the average social electricity purchase price. In the lower level of the model, considering the impact of market power on the bidding strategy of generation companies, the bidding strategy of generation companies set as price makers is proposed using the residual demand curve analysis method, while the price takers adopt the lowest bidding strategy. Simulations based on data from a provincial electricity market in China illustrate that the proposed model can effectively reflect the impact of market-oriented electricity proportion on market power and market-clearing price, thus providing a quantitative basis for PX to determine the proportion of market-oriented electricity in total electricity consumption.

scholarly journals Optimal Planned Electricity Allocation Model for Power Exchange Under the Plan-Market Double-Track Mechanism

2021 ◽  
Vol 9 ◽  
Author(s):  
Chuan He ◽  
Jiajun Tang ◽  
Weishi Zhang ◽  
Zhi Zhang ◽  
Zhemin Lin ◽  
...  
Keyword(s):  
Market Power ◽  
Electricity Market ◽  
Optimization Theory ◽  
Smooth Transition ◽  
Total Energy Consumption ◽  
Allocation Model ◽  
Bidding Strategies ◽  
Power Exchange ◽  
Reasonable Proportion ◽  
Double Track

The orderly deregulation of planned electricity generation and consumption is an important measure for electricity market reform in several countries (such as China), and a reasonable proportion of planned electricity in the total energy consumption is conducive to the smooth transition from the regulation mode to the market mode. Under the plan-market double-track mechanism (PMDM) implemented, a modified linear bidding function of generation companies (GCs) is first proposed, and the unified clearing price of unilateral generation market is determined accordingly. Second, considering the robust bidding strategies of generation companies, a bi-level optimal planned electricity allocation model for power exchange (PX) is constructed. In the upper level, the proportion of planned electricity is optimized by PX to minimize the CVaR of Lerner Index (LI), so as to maintain the market power at a low level. In the lower level, based on the robust optimization theory and the prediction of rival bidding, the bidding strategy of a GC is optimized by solving a specified max–min problem. Simulations based on data from a provincial electricity market in China illustrate that the market power can be reduced through a reasonable proportion of planned electricity designed by the PX. In addition, when more GCs tend to avoid a market risk, the proportion of planned electricity can be increased accordingly.

scholarly journals How Elastic Demand Affects Bidding Strategy in Electricity Market: An Auction Approach

Energies ◽  
2018 ◽  
Vol 12 (1) ◽  
pp. 9 ◽  
Author(s):  
Debin Fang ◽  
Qiyu Ren ◽  
Qian Yu
Keyword(s):  
Market Power ◽  
Electricity Market ◽  
Bidding Strategy ◽  
Elastic Demand ◽  
Demand Distribution ◽  
Transmission Cost ◽  
Pricing Rules ◽  
Bidding Price ◽  
Bidding Mechanism ◽  
The Impact

The deepening of electricity reform results in increasingly frequent auctions and the surge of generators, making it difficult to analyze generators’ behaviors. With the difficulties to find analytical market equilibriums, approximate equilibriums were obtained instead in previous studies by market simulations, where in some cases the results are strictly bound to the initial estimations and the results are chaotic. In this paper, a multi-unit power bidding model is proposed to reveal the bidding mechanism under clearing pricing rules by employing an auction approach, for which initial estimations are non-essential. Normalized bidding price is introduced to construct generators’ price-related bidding strategy. Nash equilibriums are derived depending on the marginal cost and the winning probability which are computed from bidding quantity, transmission cost and demand distribution. Furthermore, we propose a comparative analysis to explore the impact of uncertain elastic demand on the performance of the electricity market. The result indicates that, there exists market power among generators, which lead to social welfare decreases even under competitive conditions but elastic demand is an effective way to restrain generators’ market power. The feasibility of the models is verified by a case study. Our work provides decision support for generators and a direction for improving market efficiency.

scholarly journals How Elastic Demand Affects Bidding Strategy in Electricity Market：An Auction Approach

2018 ◽  
Author(s):  
Debin Fang ◽  
Qiyu Ren ◽  
Qian Yu
Keyword(s):  
Market Power ◽  
Electricity Market ◽  
Bidding Strategy ◽  
Elastic Demand ◽  
Demand Distribution ◽  
Transmission Cost ◽  
Bidding Price ◽  
Bidding Mechanism ◽  
The Impact

The deepening of electricity reform results in increasingly frequent auctions and the surge of generators, it becomes difficult to analyze generators’ behaviors. Since it’s hard to find analytical market equilibriums, approximate equilibriums were obtained instead in previous studies by market simulations, which are strict to initial estimations and simulation results are chaotic in some cases. In this paper, a multi-unit power bidding model is proposed to reveal the bidding mechanism under clearing pricing rule by employing auction approach, for which initial estimations are non-essential. Normalized bidding price is introduced to construct generator's price-related bidding strategy. Nash equilibriums are derived depend on the marginal cost and the winning probability which are computed from bidding quantity, transmission cost and demand distribution. Furthermore, we propose a comparative analysis to explore the impact of uncertain elastic demand on the performance of the electricity market. The result indicates that, there exists market power among generators leading to social welfare decreases even under competitive conditions but elastic demand is an effective way to restrain generators’ market power. The feasibility of the models is verified by a case study. Our work provides decision support for generators and a direction for improving market efficiency.

HERON As a Tool for Light Water Reactor Market Interaction in a Deregulated Market

2020 ◽  
Author(s):  
Paul W. Talbot ◽  
Abhinav Gairola ◽  
Konor Frick ◽  
Cristian Rabiti
Keyword(s):  
Hydrogen Storage ◽  
Electricity Market ◽  
Nuclear Power ◽  
Stochastic Systems ◽  
Market Price ◽  
Energy Resource ◽  
Storage Unit ◽  
Release Process ◽  
Technoeconomic Analysis ◽  
The Impact

Abstract This paper reports the development of HERON (Holistic Energy Resource Optimization Network), a newly-developed RAVEN (Risk Analysis Virtual ENvironment) plugin for grid and capacity optimization, to technoeconomic analysis in a deregulated market. A short description of the HERON plugin is provided, and the release process is described. HERON as a plugin enables RAVEN to perform stochastic technoeconomic analysis of grid-energy systems in a generic approach. The primary function of HERON is to generate the complex RAVEN workflows necessary to optimize component capacities under stochastic systems. HERON is capable of analyzing systems with complex components transferring a variety of commodities, including production components and varied markets. HERON is capable of optimizing high-resolution dispatch for such systems and guiding stochastic optimization algorithms in RAVEN for finding optimal component capacities. In particular, this document demonstrates the application of HERON to systems with deregulated markets. A system including a hyrdogen market, an electricity market, hydrogen storage, a hydrogen producer, and a nuclear power plant is considered. Stochastic histories for electricity prices at the electricity market are employed to perform stochastic analysis for ideal sizing of the hydrogen production facility and hydrogen storage unit. The impact of hydrogen market price and volatility of electricity price are also shown.

scholarly journals Research on Funding Differences among Regional Electricity Markets in Northern China based on Thermoelectric Decoupling

2020 ◽  
Vol 185 ◽  
pp. 01017
Author(s):  
Sen Wang ◽  
Can Sun ◽  
Zhiyong Gan ◽  
Liansheng Zhou ◽  
Guilin Wang ◽  
...  
Keyword(s):  
Market Power ◽  
Electricity Markets ◽  
Electricity Market ◽  
Supply And Demand ◽  
Market Price ◽  
Northern China ◽  
Spot Market ◽  
Market Mechanism ◽  
Large Influence ◽  
Electricity Spot Market

With the development of China’s electricity spot market, planned power and market power will coexist for a long time. At the same time, by avoiding the risk of market price fluctuation through medium and long-term market, spot market guarantees electricity balance and secure operation of the grid. The electricity market mechanism has an increasingly large influence on the operation and dispatching model of power system. In spot market, decoupling operation model of market and non-market power has a large influence on both supply and demand sides and improper dredging mechanism may cause significant settlement deviation. To solve this problem, the paper, taking a city in northern China as an example, analyzes the electricity spot market, compares the sources of difference fund of market and non-market power under decoupling and non-decoupling models and compares the pros and cons of coupling and decoupling. The paper also studies the disparity of difference fund and proposes advice adapted to the electricity spot market development of northern China.

The Optimal Bidding Strategy Based on Multistage Risk for Wind Power Supplier

2013 ◽  
Vol 805-806 ◽  
pp. 327-333
Author(s):  
Tao Ye ◽  
Xie Lei ◽  
Yi Yang
Keyword(s):  
Wind Power ◽  
Value At Risk ◽  
Economic Benefit ◽  
Market Price ◽  
Estimation Method ◽  
Conditional Value At Risk ◽  
Bidding Strategy ◽  
Individual Risk ◽  
Calculation Results ◽  
The Impact

In order to improve the ability of grid-connected wind power supplier to predict and manage risk, and analyze the economic benefit of wind power supplier, a model of bidding strategy for grid-connected wind power supplier is established based on the risk measurements indicator of the Conditional Value-at-Risk (CVaR). The model considering the trade-off problem between risks and benefits comprehensively which includes three risk factors as: fluctuated market price, uncertain load demand and random wind power output. By using the kernel density estimation method (KDE) on output forecast, this optimal model obtains bidding strategy and economic benefit of grid-connected wind power supplier under the impact of multistage risk in different risk preferences and compares the results with the impact of individual risk fluctuation.The calculation results show the validity of the proposed method.

scholarly journals Influence of Wind Power on Modeling of Bidding Strategy in a Promising Power Market with a Modified Gravitational Search Algorithm

2021 ◽  
Vol 11 (10) ◽  
pp. 4438
Author(s):  
Satyendra Singh ◽  
Manoj Fozdar ◽  
Hasmat Malik ◽  
Maria del Valle Fernández Moreno ◽  
Fausto Pedro García Márquez
Keyword(s):  
Wind Power ◽  
Electricity Market ◽  
Large Scale ◽  
Search Algorithm ◽  
Gravitational Search Algorithm ◽  
Optimization Methods ◽  
Bidding Strategy ◽  
Wind Speed Profile ◽  
Gravitational Search ◽  
Modified Gravitational Search Algorithm

It is expected that large-scale producers of wind energy will become dominant players in the future electricity market. However, wind power output is irregular in nature and it is subjected to numerous fluctuations. Due to the effect on the production of wind power, producing a detailed bidding strategy is becoming more complicated in the industry. Therefore, in view of these uncertainties, a competitive bidding approach in a pool-based day-ahead energy marketplace is formulated in this paper for traditional generation with wind power utilities. The profit of the generating utility is optimized by the modified gravitational search algorithm, and the Weibull distribution function is employed to represent the stochastic properties of wind speed profile. The method proposed is being investigated and simplified for the IEEE-30 and IEEE-57 frameworks. The results were compared with the results obtained with other optimization methods to validate the approach.

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