Research on trading strategy of Regulation Market of Generation company based on trading interval decision-making model

Abstract

With the continuous acceleration of Yunnan electricity market reform, the trading variety of power market is increasingly abundant, and Frequency Regulation Market will be officially launched soon. Frequency regulation ancillary service, which refers to the secondary frequency regulation reserve capacity of the generator, helps meet the system frequency stability requirements through the automatic generation control unit (AGC) automatic response area control error (ACE) [1]. Under the circumstance that the comprehensive performance index of frequency regulation of power generation units is not prominent enough, the power generation enterprises are faced with the complicated situation of high frequency of market transaction, fierce market competition, the cost of frequency regulation cannot be accurately calculated, and the trading strategy cannot be effectively evaluated. In the process of making trading strategy, they are faced with severe challenges. This article taking China Southern (starting from Guangdong Province) Regulation Ancillary Service Market as the background and a 600MW coal-fired unit as the research object, to propose a strategy analysis method which is based on trading interval decision-making model and opportunity cost analysis. It helps generation companies to optimize the combination of day-ahead trading periods under the strategy of revenue maximization through opportunity cost analysis and the actual operation of units, and effectively solves the problem that the unit frequency regulation cost cannot be accurately quantified. At the same time, through the establishment of the trading interval decision-making model, generating companies can accurately reduce the unit offer price range, significantly improve the generating unit transaction bid success rate, realize the scientific analysis and accurate decision of the regulation ancillary service market transaction, and effectively carry out the post-evaluation of the trading strategy, constantly optimize and improve the trading strategy. The effective application of the transaction decision-making method not only guarantees the generating unit to provide high quality regulation ancillary service for the safety and stable operation of the power system, but also maximizes the profit of the Regulation Market transaction of the generation company. It improve the management level of generation companies on Regulation Ancillary Service Market transaction, this strategy analysis method aims to improve the market competitiveness of generation company in Regulation Market, and provides theoretical analysis and practical exploration for the integration of the energy market and the Regulation Market in the future under the trading environment of electricity spot market in Yunnan Province, which can be used as a reference for the industry.