Research on the Composition and Allocation of Unbalanced Costs in Power Spot Market Under the Dual-track System of China

Abstract

Unbalanced cost is an important issue in the design of power spot market mechanism. China’s power market reform has just begun and is still in a so-called “dual-track” system, in which the traditional administrative mode and the market mode both exist. This actual situation has made it difficult to deal with unbalanced costs in power spot market in China. To this end, this paper will focus on the problem of handling unbalanced costs under the dual-track system in China. Firstly, the problem of the dual-track system in China’s power market are introduced and the differences of different types of power entities are analyzed. Compared with the mature power market, the unbalanced cost of power spot market in China is characterized by non-market unbalanced cost due to the existence of scheduled power electricity and the composition of blocking costs is also different from foreign power market. This paper analyzes the generation of unbalanced costs due to non-market factors in detail and puts forward some suggestions for its allocation mechanism based on actual conditions.