Research On Generation Rights Trade And Its Associated Problems In Electricity Market

Energy saving and emission reduction as the adjustment of economic structure, have been risen to the height of the national strategy. Because the power industry is a source of energy consumption and pollutant emissions, so it becomes the focus areas of energy saving. Many of the market transaction models provide more approaches for power market reform and the implementation of energy saving policy. The generation rights trade, as a major method for energy saving and a major power trade varieties, has more and more attentions and practices. Therefore, the deepening study of generation rights trade not only enriches variety of the electricity market and improves the electricity market theory, but also meets the reform of power industry and demand of energy savings. It has important theoretical and practical value.The economic behavior of the electricity market will affect system safety and reliability, while the physical characteristics of the power system will constraints the economic behavior. Therefore, the study of Generation Rights Trade should base on the physical environment of power system, and its economic characteristics must meet the various physical constraints of the system. From the physical level, the generation rights trade will change the output of power plants, and then change the load flows, therefore, implementation of generation rights trade will affect the system security and stability; from the economic level, generation rights trade as a variety of electricity market, its trading mechanism is not perfect, the form of organization will affect its development. Based on these two aspects, this paper makes a detailed study about establishment of trade model, safety check, cost calculation and allocation, hoping these work could improve and enrich the generation rights trade theory.Because generation rights trade may change the load flows, which may cause new security problems, so security checks need to be executed in the model which is organizaed by matching method, therefore, higher efficiency and higher accuracy are needed, which could reflect the justice. This paper, firstly, analyses the problems of generation distribution factors deduced by sensitivity method. For solving these problems, the new approach should be advanced. Based on the basic circuit theory, the phenomenon of approximate linear relationship between generation and its components on lines is discovered, and it is proved by introducing hypothesises of deducing B factors. Using the least square fitting technique, the linear distribution factors could be obtained. Comparing with the conventional sensitivity factors, it's more accurate because the coupling between active and reactive power flows is taken into account.The load flows and net loss will be changed because of generation rights trade, thereby it needs to determine responsibility to the net loss compensation for the power companies. Establishing a fair and reasonable principle of compensation is not only able to allocate the definite responsibility to the traders, but also can regulate and promote generation rights trade market. Firstly, according to the basic law of the circuit, this paper analyzes the composition of the net losses, and derives the formulas of the net incremental loss. Based on the theory of net loss distribution, incremental losses are allocated to the trades and power sources. The definition of allocation reflects the consistency of transactions and flows. This method fully considers characteristics of generation rights trade incremental loss and could reflect the impact of trades to the changes of net losses. It has physical and economic significance.Because the trade order is inherent characteristic of "high low match" mode, the results gained by this mode may not be the optimal solution in the flows. This paper, based on the characteristics of power system and generation rights trade, designs a "full state" matching transaction mode, searches the optimal solution in the high dimensional, nonlinear generation trading solution space using genetic algorithms. Due to parallelly process the result of transactions, The method not only solves the problems caused by trade order under non-linear constraints, but also gains the match results and the trading volumes., the method applies to any complex trading models.In order to maintain the safty of system, the transactions declared by power plants often are canceled or cutted by organigers, which will bring the loss to these participants because they want to avoid the risk of uncompleted contract due to lack of fuels or the accidents. In order to solve this problem, this paper improves a new financial transmission right (FTR), which is a complete financial instruments of risk aversion, the power plants could buy this FTR according to their requirements to avoid loss because of lines congestion. According to these transmission rights, the congestion scheduling model is established, this model gives the right of prior transaction to these participants who buy FTR, and they also can be compensated if their transactions are canceled or cutted.The implementation of generation rights trade, on the one hand, must to adapt the generation scheduling model, on the other hand, take into account the need of market, which is energy-saving and avoiding the market risks. Givening the main object of trade is energy saving, a trade mode which is make of forward market-based and supplemented by the day-ahead matket is proposed; based on the characteristics of day-ahead market, the model of bilateral optional forward contract are established, the method of organization is introduced and the rationality of this mode is analyzed. Becasus The unit trade costs are intrduced into the calculation of strike price, so this model could lead the trades toward reducing the net loss. This model can not only adapt to the current mode of power generation scheduling arrangements, but also meet the needs of participants. Effective combination of both them not only improves the trading flexibility, which provides the chance of gaining the profit to the participants, but also exerts the role of generation rights trade, which is conducive to allocation of generation resources and maintaining system stability, increasing social benefits.