Market-Oriented Electricity Pricing Mechanism Should be Eagerly Set Up in China

Electricity pricing is the core of the power institutional reform in China, which is related to not onlyinterests redistribution of all parties, but also health and security of the entire power industry. Only byaccelerating the reform on pricing mechanism can sound development of the power industry be promoted.

Virtual electricity retailer for residents under single electricity pricing environment

Various residential electricity pricing strategies provide diverse methods for calculating consumption costs.Due to the existence of electricity company monopolies and single residential electricity pricing systems, residents of certain areas have no option but to accept the electricity pricing offered to them. Based on local residential electricity pricing strategies, a virtual electricity retailer(VER) mechanism is put forward. The proposed VER mechanism includes a pricing package plan(PPP), a consumption-based plan, an add-on plan, and an exclusive plan. A PPP optimization pricing model was established to maximize VER profits when taking into account income, allowances from sponsors, expenditures and customer savings. Finally, payment processes were designed under a fixed pricing system and a time-of-use pricing environment. This case study shows the impact of PPPs and the allowance and demonstrates that the model helps customers save electricity while maximizing VER profits.

Nodal, zonal, or uniform electricity pricing： how to deal withnetwork congestion

In this paper, the main contributions to congestion management and electricity pricing, i.e., nodal, zonal, and uniform electricity pricing, are surveyed. The key electricity market concepts are structured and a formal model framework is proposed for electricity transportation, production, and consumption in the context of limited transmission networks and competitive, welfare maximizing electricity markets. In addition, the main results of existing short-run and long-run congestion management studies are explicitly summarized. In particular, the important interconnection between short-run network management approaches and optimal long-run investments in both generation facilities and network lines are highlighted.

Research on Optimal Configuration of Energy Storage in Wind-Solar Microgrid Considering Real-Time Electricity Price

Capacity allocation and energy management strategies for energy storage are critical to the safety and economical operation of microgrids.In this paper,an improved energymanagement strategy based on real-time electricity price combined with state of charge is proposed to optimize the economic operation of wind and solar microgrids,and the optimal allocation of energy storage capacity is carried out by using this strategy.Firstly,the structure and model of microgrid are analyzed,and the outputmodel of wind power,photovoltaic and energy storage is established.Then,considering the interactive power cost between the microgrid and the main grid and the charge-discharge penalty cost of energy storage,an optimization objective function is established,and an improved energy management strategy is proposed on this basis.Finally,a physicalmodel is built inMATLAB/Simulink for simulation verification,and the energy management strategy is compared and analyzed on sunny and rainy days.The initial configuration cost function of energy storage is added to optimize the allocation of energy storage capacity.The simulation results show that the improved energy management strategy can make the battery charge-discharge response to real-time electricity price and state of charge better than the traditional strategy on sunny or rainy days,reduce the interactive power cost between the microgrid system and the power grid.After analyzing the change of energy storage power with cost,we obtain the best energy storage capacity and energy storage power.

Flexible Load Participation in Peaking Shaving and Valley Filling Based on Dynamic Price Incentives

Considering the widening of the peak-valley difference in the power grid and the difficulty of the existing fixed time-of-use electricity price mechanism in meeting the energy demand of heterogeneous users at various moments or motivating users,the design of a reasonable dynamic pricing mechanism to actively engage users in demand response becomes imperative for power grid companies.For this purpose,a power grid-flexible load bilevel model is constructed based on dynamic pricing,where the leader is the dispatching center and the lower-level flexible load acts as the follower.Initially,an upper-level day-ahead dispatching model for the power grid is established,considering the lowest power grid dispatching cost as the objective function and incorporating the power grid-side constraints.Then,the lower level comprehensively considers the load characteristics of industrial load,energy storage,and data centers,and then establishes a lower-level flexible load operation model with the lowest user power-consuming cost as the objective function.Finally,the proposed method is validated using the IEEE-118 system,and the findings indicate that the dynamic pricing mechanism for peaking shaving and valley filling can effectively guide users to respond actively,thereby reducing the peak-valley difference and decreasing users’purchasing costs.

A Short-Term Electricity Price Forecasting Scheme for Power Market

Electricity price forecasting has become an important aspect of promoting competition and safeguarding the interests of participants in electricity market. As market participants, both producers and consumers intent to contribute more efforts on developing appropriate price forecasting scheme to maximize their profits. This paper introduces a time series method developed by Box-Jenkins that applies autoregressive integrated moving average (ARIMA) model to address a best-fitted time-domain model based on a time series of historical price data. Using the model’s parameters determined from the stationarized time series of prices, the price forecasts in UK electricity market for 1 step ahead are estimated in the next day and the next week. The most suitable models are selected for them separately after comparing their prediction outcomes. The data of historical prices are obtained from UK three-month Reference Price Data from April 1st to July7th 2010.

Double Pressure on Power Grids——The demand for electricity is dropping while the electricity price is not adjusted properly

Since October 2008,China's social consumption of electricity had,for the first time,grown negatively compared to the same period of the previous year,and in November the negative growth range further expanded. The major pressure faced by the electricity industry has now turned from the contradiction between coal and electricity to electricity quantity. This is undoubtedly a true and new test to electricity enterprises which get used to high growth but are now suffering great losses. The reform of electricity system has already been in great difficulties and now is getting into a more serious situation. In order to help readers improve their knowledge and understanding of the current tough situation faced by the electricity industry and discuss how to alleviate and get through the difficulty resulted from the economic crisis "encountered once every one hundred years" by joint efforts of all parties concerned,a Seminar on Crisis and Countermeasures for Electricity Industry was held on November 20,2008. Here are some extracts from the speeches of four experts.

China hikes non-residential electricity price nationwide

On Wednesday, China announced adjustments for the prices of non-residential power and thermal coal in order to ease power shortages and reduce financial pressure on power companies. The National Development and Reform Commission (NDRC) announced that it will raise the retail price

Suggestions on the Current Electricity Price Level and Policies in China

The State Council decided to raise the retail electricity price by 0.25 Yuan/kWh from July, 2008. This will, to some extent, relieve the conflicts between power supply and demand, and decrease the economic losses in

Analysis of China's Electricity Price and Electricity Burden of Basic Industries under the Carbon Peak Target before 2030

The Chinese government is deepening reformation of electricity prices during the 14th Five Year Plan period and has set a carbon emission reduction target of reaching carbon peak before 2030.In this context,will the carbon emission target influence electricity pricing and will electricity price influence competitiveness of Chinese main industries are two questions needing to be answered.This paper compares China's electricity price level with the selected major countries in the world,and four typical industries are selected to evaluate their electricity burden respectively.Then,the correlation between residential electricity price and industrial electricity price and the influencing factors is analyzed,from the perspectives of scale,structure and technology.According to the model obtained by regression analysis,the electricity price level and corresponding residential and industrial electricity burden in 2025 and 2030 are forecasted.Index Terms-Electricity burden,industrial electricity price,regression analysis,residential electricity price.

A Temporal Convolutional Network Based Hybrid Model for Short-term Electricity Price Forecasting

Electricity prices have complex features,such as high frequency,multiple seasonality,and nonlinearity.These factors will make the prediction of electricity prices difficult.However,accurate electricity price prediction is important for energy producers and consumers to develop bidding strategies.To improve the accuracy of prediction by using each algorithms’advantages,this paper proposes a hybrid model that uses the Empirical Mode Decomposition(EMD),Autoregressive Integrated Moving Average(ARIMA),and Temporal Convolutional Network(TCN).EMD is used to decompose the electricity prices into low and high frequency components.Low frequency components are forecasted by the ARIMA model and the high frequency series are predicted by the TCN model.Experimental results using the realistic electricity price data from Pennsylvania-New Jersey-Maryland(PJM)electricity markets show that the proposed method has a higher prediction accuracy than other single methods and hybrid methods.

Optimal Operation for Baoying Pumping Station in East Route Project of South-to-North Water Transfer

Baoying pumping station is a part of source pumping stations in East Route Project of South-to-North Water Transfer in China. Aiming at the characteristics of head varying, and making use of the function of pump adjustable blade, mathematical models of pumping station optimal operation are established and solved with genetic algorithm. For different total pumping discharge and total pumping volume of water per day, in order to minimize pumping station operation cost, the number and operation duties of running pump units are respectively determined at different periods of time in a day. The results indicate that the saving of electrical cost is significantly effected by the schemes of adjusting blade angles and time-varying electrical price when pumping certain water volume of water per day, and compared with conventional operation schemes （namely, the schemes of pumping station operation at design blade angles based on certain pumping discharge）, the electrical cost is saved by 4.73%-31.27%. Also, compared with the electrical cost of conventional operation schemes, the electrical cost is saved by 2.03%-5.79% by the schemes of adjusting blade angles when pumping certain discharge.

Hydraulic model optimization of a multi-product pipeline

An optimization model is established for a multi-product pipeline which has a known delivery demand and operation plan for each off-take station.The aim of this optimization model is to minimize the total pumping operation cost,considering not only factors including the energy equilibrium constraint,the maximum and minimum suction and discharge pressures constraints of pump stations,and pressure constraint at special elevation points,but also the regional differences in electricity prices along the pipeline.The dynamic programming method is applied to solve the model and to find the optimal pump configuration.

Data-driven Two-step Day-ahead Electricity Price Forecasting Considering Price Spikes

In the electricity market environment,electricity price forecasting plays an essential role in the decision-making process of a power generation company,especially in developing the optimal bidding strategy for maximizing revenues.Hence,it is necessary for a power generation company to develop an accurate electricity price forecasting algorithm.Given this background,this paper proposes a two-step day-ahead electricity price forecasting algorithm based on the weighted Knearest neighborhood(WKNN)method and the Gaussian process regression(GPR)approach.In the first step,several predictors,i.e.,operation indicators,are presented and the WKNN method is employed to detect the day-ahead price spike based on these indicators.In the second step,the outputs of the first step are regarded as a new predictor,and it is utilized together with the operation indicators to accurately forecast the electricity price based on the GPR approach.The proposed algorithm is verified by actual market data in Pennsylvania-New JerseyMaryland Interconnection(PJM),and comparisons between this algorithm and existing ones are also made to demonstrate the effectiveness of the proposed algorithm.Simulation results show that the proposed algorithm can attain accurate price forecasting results even with several price spikes in historical electricity price data.

Power Optimization Strategy Considering Electric Vehicle in Home Energy Management System

With the development of smart grid, residents have the opportunity to schedule their household appliances （HA） for the purpose of reducing electricity expenses and alleviating the pressure of the smart grid. In this paper, we introduce the structure of home energy management system （EMS） and then propose a power optimization strategy based on household load model and electric vehicle （EV） model for home power usage. In this strategy, the electric vehicles are charged when the price is low, and otherwise, are discharged. By adopting this combined system model under the time-of-use electricity price （TOUP）, the proposed scheduling strategy would effectively minimize the electricity cost and reduce the pressure of the smart grid at the same time. Finally, simulation experiments are carried out to show the feasibility of the proposed strategy. The results show that crossover genetic particle swarm optimization algorithm has better convergence properties than traditional particle swarm algorithm and better adaptability than genetic algorithm.

Energy Price Forecasting Through Novel Fuzzy Type-1 Membership Functions

Electricity price forecasting is a subset of energy and power forecasting that focuses on projecting commercial electricity market present and future prices.Electricity price forecasting have been a critical input to energy corporations’strategic decision-making systems over the last 15 years.Many strategies have been utilized for price forecasting in the past,however Artificial Intelligence Techniques(Fuzzy Logic and ANN)have proven to be more efficient than traditional techniques(Regression and Time Series).Fuzzy logic is an approach that uses membership functions(MF)and fuzzy inference model to forecast future electricity prices.Fuzzy c-means(FCM)is one of the popular clustering approach for generating fuzzy membership functions.However,the fuzzy c-means algorithm is limited to producing only one type of MFs,Gaussian MF.The generation of various fuzzy membership functions is critical since it allows for more efficient and optimal problem solutions.As a result,for the best and most improved results for electricity price forecasting,an approach to generate multiple type-1 fuzzy MFs using FCM algorithm is required.Therefore,the objective of this paper is to propose an approach for generating type-1 fuzzy triangular and trapezoidal MFs using FCM algorithm to overcome the limitations of the FCM algorithm.The approach is used to compute and improve forecasting accuracy for electricity prices,where Australian Energy Market Operator(AEMO)data is used.The results show that the proposed approach of using FCM to generate type-1 fuzzy MFs is effective and can be adopted.

On-Grid Tariff in China——History, Current Situation, and Proposed Reform

This article introduces the history of the reform of on-grid tariff in China, the current status of and currently adopted mechanisms related to on-grid tariffs of coal-fired and renewable energy power generation facilities. The article further discusses the proposed and on-going reform and restructure in the electricity price sector, and the trial reforms in regional electricity markets.

Is Tiered Pricing For Electricity a Good Idea?

The National Development and Reform Commission of China (NDRC) came up with a draft for tiered pricing of household electricity in March. After nationwide hearings, the new pricing policy will be carried out from June.