Study On Generation Capacity Adequacy In The Deregulated Electricity Market Environment

With the socioeconomic development, deregulated the power industry is inevitable for each country in the world. The power supply must synchronize with power need and the power is difficult to be saved. The power system techniques are very complex. The project of power industry needs a vast sum funds, the building period is long. There is strong monopolization in the power industry. These factors decide the power market is more complex than the common commodities market. So, the reform of power industry is more difficult than the other industries. The power industry reform has been a great success, at the same time, many problems must be resolved immediately;for example, the generation capacity adequacy in the deregulated electricity market. This dissertation is to resolve the generation capacity adequacy in the electricity market. The main research work include: designing an incentive mechanism considering contract;building the dispatching strategies of power companies and the generating strategies of the units considering the contract and spinning reserves;studying on the question of contract volumes in electricity market on the market equilibrium and the conjectural variations and designing a novel method of dynamic price capping for the regulation of electricity market etc.Firstly, in electricity market, it is very difficult to inspirit the generation companies to bid the true cost with the uniform price auction or pay-as-bid auction. The tactful pricing of generation companies will be harmful to the security and economical operation of power system. The dissertation showed an incentive mechanism considering contract, based on the mechanism design theory. This mechanism is able to inspirit the generation companies to bid the true cost effectively and carry out economical operation as well, so it can attract the generation capacity investment and configure the social resource reasonably. The new mechanism can more effectively inspirit the generation companies on, near or over the system marginal cost, and it is able to not only ensure reasonable capacity cost recovery but also restrain the sudden huge profits of all generation companies. The motivity of increase in generation capacity and investment isensured on the electricity market mechanism.Secondly, in many electricity markets, the power company, the singular buyer represent as the users, has the core of its power dispatching, which is minimizing the purchase cost and protecting the benefit of power plants. Only in this way, the power system generation capacity adequation can be ensured, power system operate can securely and the electricity market can develope steadily. Before the electrical transaction, the power companies not only consider the power plants' competitive bidding spot price and volume, but also pay attention to the original purchase contract with the original power plants and the spinning reserve of power system. Therefore, it is necessary to coordinate the volumes among the contract bid, the competitive bids and the spinning reserve for the predicted generation volumes. Aiming at this, the dissertation puts forward a new model for the economically apportioning strategies among the competitive bids, the purchase contracts and the spinning reserve volumes. At the same time, a simplified model is taken for the seeking process. Linear Programming and the approach based on phase-out were used to solve the model, so the process became simple and credible.Thirdly, the participators of electricity market can't lack of power suppliers like other markets. The power plants consider not only the competitive bids in spot market and the original purchase contracts with the power companies, or the users, but also the spinning reserve when programming the daily generation strategies. So, it is an important problem deserving of study how to tactful dispatch the competitive bid volumes, the contract volumes and the spinning volumes of power plants together and carry out maximum profits. Aiming at this goal, the dissertation puts forward a novel daily generating model. The mathematic model, which is difficult to solve it directly, is a nonlinear programming model containing the integral and continual variable. So, a reasonably simplized model is introduced for the seeking process. Then, the units' sequence on efficiency and the Quadratic Programming are used to seek the model step by step. The analysis of the case proves this approach is reasonable and practicable.Fourthly, it is important way to set up electric contract market for mitigating the market power in electricity markets. In the dissertation, a novel optimizationmodel was put forward to the balance spot price, contract prices, contract volumes and competitive bidding volumes between the generation companies and the single power purchaser. The model bases on the market equilibrium and the conjectural variations. It aims to control the spot price and maximize the profits of generation companies. The discussion clearly shows the influences of the adjustable factor of contract prices, the conjectural variations of contract volumes and the number of generation companies in market on the spot price, the optimum contract volumes and the cost price of purchaser. What's more, it proves the electric contract is very important to mitigate the market power and maintain adequate generation capacity.Fifthly, at present, the price cap as a measure of regulator is widely used in the power markets on the world, but the existing methods of price capping couldn't control the price spikes and evade the risk effectively. Thus, a novel model called Dynamic Price Capping Model(DPCM) is proposed, which absorbs the merits of the British Retail Price Index(RPI) and the American Rate of Return(ROR), reserves the dynamic adjusting feature of Price Capping Model(PCM) and achieves fair return of the investment. The calculation for profit factor and the incentive mechanism for new or old power plant about this model are discussed. It shows the approach is more reasonable and practicable solution for the dilemma of price cap in the power market.