Modelling and Assessing the Advantages of Integrating Wind, Solar, and Coal Systems within an Annual Bilateral Trading Setting

Abstract

The integration and co-location of new energy sources and thermal power generation within the same grid connection point, under the management of a single market operator, provide noteworthy potential for exploration in the northern part of our nation. This method is based on the premise of allocating new energy resources primarily for generating contracted electricity, while using thermal power to offer ancillary services. This strategy aims to integrate and use the distinct benefits of both thermal power and new energy sources. The yearly bilateral trade market has significant potential for growth and development. In order to model and evaluate the income generated by the interconnected system’s involvement in the yearly bilateral trading market, this study first establishes the definition of the interconnected system and examines its research significance in engaging in annual bilateral trading. This study utilizes the theoretical framework of master-slave games to analyze the involvement of a coupled system in yearly bilateral trade. The specific case examined in this research is a wind-solar-thermal coupling system located in a particular location of Liaoning Province. This study examines the economic advantages of engaging in the electricity market by considering the marginal cost and LCOE (Levelized Cost of Electricity) perspectives. The findings suggest a notable enhancement in the advantages of the integrated system inside the yearly bilateral trade market, in contrast to conventional power sources present in the market, as well as instances when these sources function autonomously without integration.