Optimal strategy for energy allocation and bidding decision of generators considering generation adequacy

Abstract

The goal of China’s new round of electricity market reform is to orderly release the plan of power generation and power utilization and gradually expand the scale of market-oriented transactions. The generation adequacy is an indicator that needs to be paid attention to during releasing the plan of power generation and power utilization. Insufficient generation adequacy will result in market monopoly and high market-clearing prices. Given this background, the market power and bidding strategies of generators under the low and high generation adequacy are analyzed in this paper. Then, a synthetic decision model for the energy allocation between bilateral contracts and a pool market and the bidding strategy in the pool market is constructed considering the generation adequacy. Case studies are performed for demonstrating the decision-making model and simulation results show that the proposed model can assist generators to make energy allocation and bidding decision based on the generation adequacy, own power generation capacity and bilateral contract prices, and can provide guidance for market operation agencies to gradually release the plan of power generation and power utilization.