Abstract
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.
Highlights
In August 2017, the National Development and Reform Commission and the State Energy Administration issued a Notice on the pilot work on the Construction of the Spot Market for Electricity, which identified eight regions (Guangdong, Mengxi, Zhejiang, Shanxi, Shandong, Fujian, Sichuan and Gansu) as the first pilots.The rules published in the pilot areas have made it clear in many places that the medium- and long-term contract market adopts the CFD model and settles the difference based on the current spot market price
In the study of measuring risk based on cost variance, literature [1] studied the bidding strategy of power generation companies based on the method of measuring risk based on profit variance
This paper studies the bidding strategies of power generation companies in the centralized spot market, and constructs a trading decision method based on the probability curve of winning bids, which has certain practicability
Summary
In August 2017, the National Development and Reform Commission and the State Energy Administration issued a Notice on the pilot work on the Construction of the Spot Market for Electricity, which identified eight regions (Guangdong, Mengxi, Zhejiang, Shanxi, Shandong, Fujian, Sichuan and Gansu) as the first pilots.The rules published in the pilot areas have made it clear in many places that the medium- and long-term contract market adopts the CFD model and settles the difference based on the current spot market price. It sorted out China's electricity market mechanism, analyzed the trading needs of power generation companies in the spot market, and based on the winning probability curve, proposed a bidding strategy for power companies in the spot market.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
