Abstract
China is performing the electricity market reform. With the increasing penetration of renewable energy, it is important to understand how the renewables influence the market performance. Renewables are different from the traditional generators in two aspects: 1) the marginal costs of renewable are small; 2) renewables cause fluctuations and increase the requirement of auxiliary service. In this paper, we analyse the influence of renewables on the market equilibrium. A multiperiod Supply Function Equilibrium (SFE) model is formulated, where the upper level model maximizes individual profits of market participants, and the lower level model minimizes the market operational costs. To avoid the infeasibility of the equilibrium model, the relaxation of the complementary slackness condition is utilized. This paper exhibits how the increase of renewable penetrations affects the optimal bidding and profits of other market participants, including the traditional generators, hydro generator, and storage. The influence of renewables on the market equilibrium is exhibited as well.
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.
