Study on Electricity Price Formation Mechanism Based on the Renewable Energy Power Generation with the Externalities of Grid Connection

Abstract

In nowadays society, the promotion of conservation and environmental protection has been firmly established, which includes energy use. People continue to advocate for renewable energy, which makes the development speed of renewable energy has been greatly improved. Intermittent renewable energy development has also brought new challenges for power system planning, safety, design and operations. In the past development, aiming at how the grid connection of intermittent renewable energy generation participate in electricity market operation problems, many domestic scholars have done the corresponding research work, especially in terms of electricity price formation mechanism. In this paper, it fully describes the development process of renewable energy development participating in the competitions of electricity markets, describes the research results of electricity price formation price of renewable energy power generation in various countries at home and abroad, and analyzes the impacts of renewable energy power generation on the market electricity price when participating in the electricity market operations.