Imbalance Settlement Mechanism in Nordic Electricity Market and Enlightenment to Yunnan Electricity Market

Abstract

The power system is balanced in real time. Due to the uncertainty of the completion of the power generation plan, the temporary failure of the power generation, consumption sides and the grid, there will always be a certain deviation between the transaction power and the actual power. Whether it is a medium-to-long-term market or a spot market, market players need to be motivated to minimize the amount of deviation and reduce the pressure on system scheduling. Therefore, the imbalance settlement mechanism is particularly important. The imbalance settlement mechanism in the Nordic electricity market has been in operation for nearly 20 years, and has been continuously optimized according to market conditions. This paper conducts an in-depth analysis of the imbalance settlement system in the Nordic electricity market, including the imbalance settlement structure, imbalance settlement model, imbalance volume calculation and imbalance fee calculation. Supplemented by examples to better clarify the settlement rules. Finally, combined with the current situation of Yunnan electricity market settlement, it is suggested on the construction of imbalance settlement mechanism from several aspects, such as the construction of imbalance settlement system, settlement index monitoring, imbalance settlement price and settlement rights and responsibilities.