Abstract
There is a hydraulic coupling relationship between the upstream and downstream of cascade hydropower stations, and they usually belong to different stakeholders. Traditional clearing mechanism may lead to the mismatch between the bid-winning power and the actual power generated by the downstream power stations, and the low-cost downstream power stations may lose some chance to generate, resulting in damage to social welfare. This paper analyzes the problems faced by multi-operator cascade hydropower stations participating in the day-ahead market. By deducing the generation coupling relationship between upstream and downstream cascade hydropower stations, it is found that the output of downstream hydropower stations can be divided into four parts: fixed part, adjustable part, the part coupled with the output of the upstream power station, the part coupled with the output of the upstream power station and the adjustable output. At last, day-ahead market clearing mechanism and settlement mechanism for downstream power stations to participate in bidding are proposed.
Highlights
In October 2017, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) issued a notice on promoting the hydropower consumption in Southwest China, encouraging the development of spot electricity market pilot projects, and forming a market-oriented mechanism and price mechanism conducive to the optimal allocation of hydropower
There is a hydraulic coupling relationship between the upstream and downstream power stations of cascade hydropower, which usually belong to different stakeholders and face many challenges when participating in the spot market[1,2,3,4]
When the upstream power station is at a loss and the downstream power station is at a profit, the clearing of the upstream power station whose bid price is higher than market clearing price increases the profit of the downstream power station, and the increased profit is sufficient to compensate the loss of the upstream power station
Summary
In October 2017, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) issued a notice on promoting the hydropower consumption in Southwest China, encouraging the development of spot electricity market pilot projects, and forming a market-oriented mechanism and price mechanism conducive to the optimal allocation of hydropower. There is a hydraulic coupling relationship between the upstream and downstream power stations of cascade hydropower, which usually belong to different stakeholders and face many challenges when participating in the spot market[1,2,3,4] For this case, literature [2,3,4] proposed a day-ahead market clearing model with independent participation of upstream and downstream hydropower stations. For the case that the upstream and downstream power stations belong to different stakeholders, the upstream power station will make the quotation with the goal of maximizing its own profit This may cause the low-cost downstream power stations to lose some opportunities to generate due to limited water supply, reduce social welfare, and is not conducive to the optimal allocation of resources
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