Evaluation method for assessing the auxiliary service transaction mechanism in regional power markets

Accurate and seamless auxiliary services in the power market can guarantee smooth and continuous power system operation. China’s new round of power system reform has entered a critical period, and reform implementation requires comprehensive improvements in the maturity of the supporting auxiliary service market. This study reviews the development status and evolution path of the European unified power market and the US regional power market, provides experience for the development of China’s regional power market, then identifies the key influencing factors of auxiliary service trading mechanism design in regional power markets. To analyze the rationality of the auxiliary service trading evaluation index, this paper established an evaluation model for assessing regional power markets. Using combined weight optimization, the gray correlation TOPSIS method was applied to comprehensively evaluate auxiliary service trading in the regional power market. Finally, the application of the proposed evaluation method was briefly analyzed to examine four regional power markets in China and evaluate the effectiveness of current market construction in different regions and provide suggestions for future market construction.

Equilibria in Interdependent Natural-gas and Electric Power Markets: an Analytical Approach

Natural-gas and electric power systems and their corresponding markets have evolved over time independently. However, both systems are increasingly interdependent since combined cycle gas turbines that use natural gas to produce electricity increasingly couple them together. Therefore, suitable analysis techniques are most needed to comprehend the consequences on market outcomes of an increasing level of integration of both systems. There is a vast literature on integrated natural-gas and electric power markets assuming that the two markets are operated centrally by a single operator. This assumption is often untrue in the real world, which necessitates developing models for these interdependent yet independent markets. In this vein, this paper addresses the gap in the literature and provides analytical Nash-Cournot equilibrium models to represent the joint operation of natural-gas and electric power markets with the assumption that the market participants in each market make their own decisions independently seeking the maximum profits, as often is the case in the real world. We develop an analytical equilibrium model and apply the Karush-Kuhn-Tucker (KKT) approach to obtain Nash-Cournot equilibria for the interdependent natural-gas and electric power markets. We use a double-duopoly case to study the interaction of both markets and to derive insightful analytical results. Moreover, we derive closed-form analytical expressions for spot-market equilibria in both natural-gas and electric power markets, which are relevant and of practical significance for decision makers. We complement the double-duopoly study with a detailed sensitivity analysis.

Energy-Efficient Operation of Water Systems through Optimization of Load Power Reduction in Electricity Markets

Demand response(DR) is gaining more and more importance in the architecture of power systems in a context of flexible loads and high share of intermittent generation. Changes in electricity markets regulation in several countries have recently enabled an effective integration of DR mechanisms in power systems. Through its flexible components(pumps, tanks), drinking water systems are suitable candidates for energy-efficient DR mechanisms. However, these systems are often managed independently of power system operation for both economic and operational reasons. Indeed, a sufficient level of economic viability and water demands risk management are necessary for water utilities to integrate their flexibilities to power system operation. In this paper,we proposed a mathematical model for optimizing pump schedules in water systems while trading DR blocs in a spot power market during peak times. Uncertainties about water demands were considered in the mathematical model allowing to propose power reductions covering the potential risk of real-time water demand forecasting inaccuracy.Numerical results were discussed on a real water system in France, demonstrating both economic and ecological benefits.

A low-carbon economic dispatch model for electricity market with wind power based on improved ant-lion optimisation algorithm

Introducing carbon trading into electricity market can convert carbon dioxide into schedulable resources with economic value.However,the randomness of wind power generation puts forward higher requirements for electricity market transactions.Therefore,the carbon trading market is introduced into the wind power market,and a new form of low-carbon economic dispatch model is developed.First,the economic dispatch goal of wind power is be considered.It is projected to save money and reduce the cost of power generation for the system.The model includes risk operating costs to account for the impact of wind power output variability on the system,as well as wind farm negative efficiency operating costs to account for the loss caused by wind abandonment.The model also employs carbon trading market metrics to achieve the goal of lowering system carbon emissions,and analyze the impact of different carbon trading prices on the system.A low-carbon economic dispatch model for the wind power market is implemented based on the following two goals.Finally,the solution is optimised using the Ant-lion optimisation method,which combines Levi's flight mechanism and golden sine.The proposed model and algorithm's rationality is proven through the use of cases.

New Analytical Model for Optimal Placement of Wind Turbines in Power Network under Pool and Reserve Markets Conditions

In this paper a new market based analytical model is proposed for optimal placement of Wind Turbines (WTs) in power systems. In addition to wind turbines, thermal units (THUs) and Pumped Storage Hydro Power Plants (PSHPPs) owners participate in power market. Objective function is defined as participants’ social welfare achieved from power pool and ancillary markets in yearly horizon. Wind turbines have been modeled by probability-generation tree scenarios based on statistical information. We concentrate on investment profits of WTs numbers and its generation capacity beside to PSHPPs and THUs power plants in power systems due to increase in high flexible tools for Independent system operator into the planning and operation planning time interval. For effectiveness evaluation of proposed model, simulation studies are applied on 14-Bus IEEE test power system.

Annual Report of SGCC on Transactions of Electric Power Market in 2009

Market construction Overview In 2009, the electric power market expanded continuously. New installed capacity put into production within the coverage of the State Grid Corporation

Cooperative Innovation in a Supply Chain with Different Market Power Structures

This paper studies firms’ innovation behavior in a supply chain where two firms first invest to reduce component’ cost according to different innovation modes (non-cooperative innovation, sequential innovation, and cooperative innovation) and then decide the prices according to different market powers (Supplier-Stackelberg, Manufacturer-Stackelberg, and Nash). We find that both the supplier and the manufacturer make more innovation efforts and profits under sequential innovation than under non-cooperative innovation when the market power is any one of three structures. Moreover, the firm prefers to invest as the follower in sequential innovation. We also show that the firms are easy to achieve cooperative innovation under symmetrical power market structure than asymmetrical power market structure. By using a concept named innovation-desirability-index that measures a firm’s desire to innovate in the supply chain, we show that it is optimal for a firm in the chain to cooperate with such a firm whose market power is close to his own if the innovation-desirability-index is higher, otherwise with such a firm whose market power is lower to his own.

Pricing Power of China's Cocoon and Silk Products in International Market:An Empirical Analysis Based on International Market Power

Do China＇s silk products only have advantage in number but no pricing power in international market？ In this paper, we used the residual demand elasticity model to estimate the international market power of China＇s silk products. The empirical results revealed that China＇s raw material products such as natural silk products and semi-finished products such as satin products had certain market power in the main export markets, but the finished silk products such as woman＇s blouse or shirts and shawls had no market power in the target markets including USA and Germany. The scale economy from resource endowment and great market share are the base of the international market power of natural silk products. The advantage from industry agglomeration and great market share are the source of the international market power of satin products. Technical bottlenecks and inefficiency in brand building are the cause of unobvious international market power of China＇s finished silk products, and the competition from Italy and France has increased the difficulty to enhance market power. In order to consolidate and improve the international market power of China＇s silk products, it is suggested to stabilize the production scale and strengthen industrial base, to speed up the resources integration and optimize the industrial distribution, to strengthen science and technology innovation and adjust product structure, to speed up the brand construction and enhance the influence of brand, and to enlarge the scale of organization and achieve scale economies.

Analysis of Chinese Power Market in 2007 and Its Forecast

Power supply and demand inJanuary-September, 2007Since 2007, the national economy developed continu-ously, showing a situation of rapid growth, more optimizedstructure, increased efficiency and improvement of people'slivelihood. In the first three quarters, GDP achieved 16.6043trillion Yuan, and its year-on-year growth rate was 11.5%;

Research on the Effects of the Most Used Market Power Mitigation Mechanisms Considering Different Market Environments

The market power mitigation method of the supply-side has become one of the key points affecting the stability of the electricity spot market.Different mitigation mechanisms are used in the current mature electricity markets of the world.However,the same market power mitigation mechanism shows different effects in different market environments.Every market operator in the world needs the most efficient way to mitigate market power.Considering that there is no relevant literature discussing the market power effects of different mitigation methods in detail,the mitigation effects need to be discussed and further researched.So,we analyze the effects of the most utilized market power mitigation mechanisms while considering different market environments.Firstly,we establish a Nash-Stackelberg interactive game model to simulate the competitive strategies of power suppliers.Secondly,the different market power mitigation approaches are modeled.Then,a multi-agent system(MAS)genetic interior-point algorithm is proposed to solve the problem of suppliers.Finally,through the simulation analysis,the market power mitigation effects of different mechanisms while considering three operation states of the system in two market structures are all analyzed.

Contribution of UHV Grid to United National Power Market

Power market construction is an important part of the marketization reform in China's electric power industry and an essential part of the economic system reform in China. With the social and economic development, the contradiction between distribution of energy resources and development of regional economies gets increasingly noticeable, and a united national power market is consequentially required to optimize the allocation of energy resources over the whole country. Analyses indicate that the development of UHV grid will provide a strong material support for the united national power market by expanding market coverage, lowering load fluctuation and promoting diversif ication of power resources.

Power Market Development with Considerations of Characteristics of China Power Sector

The current world trend of electric power industry reform is to establish electric power market and introduce competition mechanism. China is no exception. This paper reviewed the recent industry reform of China’s electric power sector and elaborated the necessity of establishing electric power markets first. Then it discussed the electric power market models in China. Certain important problems and observations relevant to the electric power market design were further pointed out, based on the practice experiences in Sichuan Province.

Daily rolling estimation of carbon emission cost of coal-fired units considering long-cycle interactive operation simulation of carbon-electricity market

The high overlap of participants in the carbon emissions trading and electricity markets couples the operations of the two markets.The carbon emission cost(CEC)of coal-fired units becomes part of the power generation cost through market coupling.The accuracy of CEC calculation affects the clearing capacity of coal-fired units in the electric power market.Study of carbon–electricity market interaction and CEC calculations is still in its initial stages.This study analyzes the impact of carbon emissions trading and compliance on the operation of the electric power market and defines the cost transmission mode between the carbon emissions trading and electric power markets.A long-period interactive operation simulation mechanism for the carbon–electricity market is established,and operation and trading models of the carbon emissions trading market and electric power market are established.A daily rolling estimation method for the CEC of coal-fired units is proposed,along with the CEC per unit electric quantity of the coal-fired units.The feasibility and effectiveness of the proposed method are verified through an example simulation,and the factors influencing the CEC are analyzed.

Design of Robust Var Reserve Contract for Enhancing Reactive Power Ancillary Service Market Efficiency

In a deregulated Var market, market power issue is more serious than in an energy market since reactive power cannot be transmitted over long distances. This letter designs a multi-timescale Var market framework, where market power that may arise in the hourly-ahead Var support service market due to system configuration deficiency and market structure flaws can be eliminated by day-ahead contract-based Var reserve service market. Settlement of day-ahead Var reserve contract is formulated as a two-stage robust optimization (TSRO) model considering worst case of uncertainty realization and potential market power that may arise in hourly-ahead market. TSRO with integer recourses is then solved by a new column and constraint generation algorithm. Results show a robust Var reserve contract can fully eliminate market power, and prevent suppliers from manipulating market prices.

Optimal allocation method of energy storage for integrated renewable generation plants based on power market simulation

This study designs and proposes a method for evaluating the configuration of energy storage for integrated re-newable generation plants in the power spot market,which adopts a two-level optimization model of“system simulation+plant optimization”.The first step is“system simulation”which is using the power market simu-lation model to obtain the initial nodal marginal price and curtailment of the integrated renewable generation plant.The second step is“plant optimization”which is using the operation optimization model of the integrated renewable generation plant to optimize the charge-discharge operation of energy storage.In the third step,“sys-tem simulation”is conducted again,and the combined power of renewable and energy storage inside the plant is brought into the system model and simulated again for 8,760 h of power market year-round to quantify and compare the power generation and revenue of the integrated renewable generation plant after applying energy storage.In the case analysis of the provincial power spot market,an empirical analysis of a 1 GW wind-solar-storage integrated generation plant was conducted.The results show that the economic benefit of energy storage is approximately proportional to its capacity and that there is a slowdown in the growth of economic benefits when the capacity is too large.In the case that the investment benefit of energy storage only considers the in-come of electric energy-related incomes and does not consider the income of capacity mechanism and auxiliary services,the income of energy storage cannot fulfill the economic requirements of energy storage investment.

Input Trade Liberalization and Welfare Loss of Manufacturing Enterprises:Based on the Perspective of Efficient Market Power

Considering that upstream monopoly will lead to an exponential increase in the loss of social welfare,this paper investigates the impact of intermediate goods tariff concession on the welfare loss of manufacturing enterprises from the perspective of input trade liberalization and effective market power.It has been discovered that input trade liberalization significantly reduces the welfare loss of manufacturing enterprises.Due to the game condition in which oligopolies check each other and small businesses“gain from fishing”,the inhibitory impact increases as market share decreases.The mechanism test demonstrates that input trade liberalization boosts the effect of technical competition and minimizes welfare loss through promoting market development degree and reducing factor distortion.In addition,this paper also finds that the effect of input trade liberalization on high monopolistic power enterprises is obviously stronger than that of low monopolistic power enterprises.Furthermore,the impact on non-high-tech industries and capital-intensive enterprises is significant,while that on high-tech industries and labor-intensive industries is not.Therefore,the welfare loss should be investigated from the dual perspective of market structure and marker power.Competitiveness has an important effect,while trade liberalization of intermediate inputs has a pivotal effect on promoting market development and improving resource allocation efficiency.

Comparing Competition Equilibrium with Nash Equilibrium in Electric Power Market

The Nash equilibrium and competition equilibrium have been widely studied in the electric power market up to now.In this paper,it is explained that the Nash equilibrium can be achieved by using marginal cost pricing and the com-petition equilibrium can be performed by using accounting cost pricing based on the model of the power market system.The comparison between the Nash equilibrium and competition equilibrium indicates that surplus and unfair allocation of market benefits may be obtained by the Nash equilibrium,and the competition equilibrium realizes the optimization in economics with maximum market efficiency and fairness for market benefit allocations while the optimization in mathematics is achieved by the Nash equilibrium.There is sameness between the Nash equilibrium and competition equilibrium at the point when the power network characteristics are disregarded.The case study is made on a IEEE 30-bus system,and the calculation results indicate that it is the key issue to perform the competition equilibrium by using accounting cost pricing.