Abstract
In the process of deepening market-oriented reform, the most important thing in China is building a national unified electricity market system under a high renewable energy penetration scenario. The new round of market-oriented reform proposes to establish an inter-provincial electricity-trading arrangement. Due to imperfect market mechanisms and immature inter-provincial electricity markets, we investigate the electricity market operation system of the national unified electricity market. Existing transmission commitments, trading cycles, market participants, strategic bids, and clearing and settlement mechanisms are analyzed for inter-provincial medium- and long-term markets. For security reasons of interchange schedules, we propose a novel inter-provincial market-clearing model based on static security regions, which consider inter-provincial electricity transmissions and direct current power flows. The proposed market-clearing model is simulated and verified in a 3-bus system and an IEEE 30-bus system. The proposed clearing model and rational market theory are conducive not only to promoting renewable energy consumption but also to improving the linkages between inter-provincial medium- and long-term markets.
Highlights
Electricity market reform is steadily advancing in China
The unconstrained schedule should be amended to a constrained trading schedule, which can be executed by the Provincial Electric Power Dispatching Center (PEPDC) and National Electric Power Dispatching and Control Center (NEPDCC)
We propose a novel clearing model based on the security region for medium- and long-term (M-L) inter-provincial markets
Summary
Electricity market reform is steadily advancing in China. In 2021, the Central Committee for Comprehensively Deepening Reforms reviewed and approved the rules for a national unified electricity market system (NUEMS). The M-L inter-provincial market mechanism should meet the annual national priority power generation schedules This part of electricity is dominated by renewable energy generation, and the electricity price is determined using market-oriented methods. The unconstrained schedule should be amended to a constrained trading schedule, which can be executed by the PEPDC and NEPDCC This shows how static security regions are important in an inter-provincial market-clearing model. The problem of wind abandonment is solved by two methods: interprovincial power transmission and local consumption This will help realize the optimal allocation of renewable energy among different provinces. While China builds power systems with a high penetration rate of renewable energy, relevant departments should establish a complete electricity price system to ensure the stable operation of the market. It can be proved that the MCP obtained by the proposed marketclearing model is consistent with the actual situation
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
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 call
