Research on an optimization model for wind power and thermal power participating in two-level power market transactions

Abstract

In 2015, “Several Opinions on Further Deepening the Reform of the Power System” was issued. The new round of power system reforms proposes to give full play to the vitality of the power generation-side bidding market, which will help to establish a fair, reasonable, and active power market. Due to factors such as a lack of peak shaving capacity and imperfect market mechanisms, China's renewable energy participation in the power market faces many problems. To solve these, this paper proposes a two-level optimization model for a wind power plant and thermal power unit to participate in the medium and long-term electricity market, and day-ahead market transactions. First, the paper proposes the electricity quantity and electricity price determination method of annual bilateral negotiated transactions, monthly centralized bidding transactions and listings, and delisting transactions, and briefly describes how to decompose contract electricity into the day-ahead market in the medium and long-term market. Then, two ways for the wind power plant and thermal power unit to participate in the power market are proposed. With maximization of the market benefits as the objective function, and through comprehensive consideration of the system reserve, wind curtailment penalty, green certificate trading, and other issues, the two models of independent participation and joint participation in market transactions were established to study the problem of maximum profit on the power generation side. Finally, the analysis results of the calculation example show that the joint participation of the wind power plant and thermal power unit in the power market has additional benefits compared to independent participation. The wind power plant can complete the assessment index of the renewable energy quota for the thermal power unit, which does not need to purchase green certificates to complete the assessment indicators. The thermal power unit can provide reserve services for the wind power plant, avoiding output whenever necessary, reducing the cost of the curtailment penalty, and overcoming the threat of wind power plant output fluctuations to the system. The two alliances have greater profit margins.