Research And Case Analysis On Market Power In The Electricity Market Of China

In developed countries's restructured electricity market,the Gencos as the entities of taking part in market competition can usually carry out their market power to manipulate generation market. After analyzing condition of market operating and strategy of Genco's bidding,that designs a applicable regualation system and corresponding regulation rules for market efficient competition is key to electric power regulation organize. This paper analysis many aspects of factors which can infect the market power and issues of identify,keep away and monitor of market power in the electricity market. Also,this paper found an evaluation index system of market power.The content and conclusions as follow:1.On the base of appraising the definition of market power of the international institutions ,then put forward the definition of market power which can describe its characteristic. Secondly, this paper intensively studied on three main factors in Genco's market power,which is pattern of market organization,settle methods of market and fules and policy of market by constructing and solving Genco's maximum benefit model. Finally, in contrast to the relationship between the marginal expenditures (income), the marginal value (cost) and the market price in the competition and monopolization markets by using the market price-quantity curve,expatiated the factors and market barriers which can restrict market power.2. Qualitative analysised of the market power in the forward market and spot market which is effected by the futures market and forward forward market;Then discussed the difference between the withhold and non-withhold market by using the supply and demand curve, and explored the market condition which can make the Gencos earn the additional benefit, then analysised the distinguish of the economic withhold and the risk in reason of the Gencos;Finally,through an example to explain the infection of the market power.3. This paper researched the influence factors of the market power and then carry out the index to measure the market structure and the behavior of the Gencos: design three kinds of indexes which are market structure,market efficiency and market supply-demand to measure the market status;design the status of generation companies index and the strategy of the generation companies index to measure the Gencos behavior.Through the method of AHP to build the synthetize index to measure the market power.Research of this index help to China build electricity power regulation system andregulation rules with now China's restructured electricity market,for standardizing market participants'behavior and enhancing efficiency.4. Discussed the origin and the exhibition of the market power,this paper thought that increase elasticity of the electricity demand can restrain the market power, and then through an example to demonstrate the conclusion;Then, proposed methods to increase the electricity elasticity of demand:to make the reserve capacity more elasticity and use the real-time price for the customers;Finally, promoted two steps to mitigate the market powenfirst,enhance the future contract,second is to adopt the bidding curve.5. On the base of summarizing the monitor pattern,function and the aim in the electricity market, analyzed the characteristic of the monitor patterns in English, American and the Japanese electricity market, finally proposed the concrete management methods to monitor market power in the China's electricity market.6. In this chapter,through the evaluation index system,we can work out the risk of the market power.And base the realityj promote some advice on how to low the risk of the market power.