Study On The Electricity Pricing Theory Of Bilateral Transaction Mode

The electric power system reform of our country broke the integrated operation mode In 2002, it formed electricity power market situation based on that the power generation side is competitive, the transmission and disttrbution side are monopolic, electricity grid company buy and sell electricity uniformly and the country approve the electricity price in transition period.breaking monopoly of transmission and disttrbution side, splitting the link of transmission and disttrbution side, rationalizing price and price bidding that suggest by the power system reform without realizing fair competition、open and orderly、healthy development of electric power market system, so the electric power reform remains to be further deepened.Therefore,it’s significant to strengthen the study of electricity pricing theory, explore electricity reform path, coordinate the relationship between power producers, power companies and users and estimate trading patterns that suitable for China. This paper presents a bilateral trading model that grid completely out of pricing system, and build a bilateral trade model for our country. In the bilateral trade mode, the power industry is divided into two sections that the generation side is competitive and the power grid is monopolic, for the part of the monopoly, power grid prices electricity in accordance with the public product.Power generation side is managed in accordance with the market orientation, the price of power is decided by the market, thus, electricity price could play the role of allocating the resources.In bilateral trade mode, the main part of the power trading will shift, power grid enterprises will withdraw from unified purchase and sale of electric power, each generation company is the seller of power transactions and the buyer is the user, and the price is decided by trade negotiations or bidding transaction.As the platform of electricity transmission, power grid is a delivery between the seller and the buyer and power grid enterprises obtain revenues by providing transmission network.There are two kinds of trade electric power trade that bilateral contract trade and real-time power transactions in bilateral trade mode mainly. Bilateral contract deal is the main form of electricity trade and the volume will reach more than 80% generally, Real-time power transactions is a supplementary form to solve the real-time requirements of power and keep electric power balance.Real-time bidding transaction can reference to securities trading way that high and low matching method. The price of contract transaction is reached by bilateral negotiation. Bilateral trading mechanism is a electric market-oriented way that embodies the fair bidding and selectivity of both parties.Second, this paper studies the grid pricing and electricity pricing bilateral trading model of the power system, propose contract pricing mechanism based on cooperative game and centralized auction mechanism.First, the contract pricing mechanism based on cooperative game to avoid the phenomenon that negotiating time is too long caused by turns negotiations or one by one negotiations, thereby it could reduce transaction risks, and taking into account the actual situation of electricity trading, and analysised the one-many and many-many deals situations of independent trade and cross transaction specifically.Secondly, the model takes into account that the electricity market is different from other commodity markets, it always faced enormous losses come from natural disasters, grid congestion and cooperation ethical breach and so on, making the transaction subject could cooperate with multiple objects simultaneously to spread risk over when selecting bilateral trading partner.At the same time, the article introduces the characteristics of electricity trading alliance members, the contract price determining mechanism was constructed under the action of multi-factors. Finally, the paper presents a grid cost theory based on the pricing of public goods, so as to solve the monopoly problem of power, and to create the conditions for bilateral trade.Third, the paper studies the feasibility of achieving bilateral trade patterns. According to the electric power reform experience of abroad, there are three main forms under the condition of marketization mode, namely the power pool mode, bilateral transaction mode and multilateral transaction mode.Each model has successful experience, we cannot copy according to the set but use this experience selectively and innovatively according to the actual situation of various countries.Due to bilateral trade canceled the concept of tariff, weakened the impact of cost pricing, price subsidies in the history will be the biggest obstacle of bilateral trade.Because electricity subsidies directly transferred government responsibility to the corporate and is transferred to the user or the investors by passing electricity costs, it is not really reflect the inherent nature of electricity, it is a direct result of the unequal status of parties to the transactionand the loss of the underlying transaction.Therefore, in order to ensure the realization of bilateral trade, the government should withdraw from the market, hand energy trading over to the market and return to the essence of electricity. In China,when the problem of power shortage and power delivery problems are basically solved, bilateral trading modelwill be realistic and feasible choice of electricity reform.The study pointed out that the current bilateral trade model is a widely used abroad, this mode enables the grid transformation profit model, it can let go of cower generation side and sale of electricity side, eliminate monopoly trading, incentive competitive power suppliers and users and rationalize the relationship between power producers, power grids and users by grid exiting electricity pricing mechanism. Therefore, bilateral trading patterns return to the essence of electricity, will play a huge role in the efficient allocation of power resources, but also makes the development of China’s power industry to open a new page. However, the electricity reform is a complex and difficult project, national electricity system and stages of development is different, bilateral trade will present its own characteristics. so we still have a lot of complex and detailed work to be done, such as government’s role and status in the bilateral trading patterns, equal trading of green environmental protection and energy saving power plant, grid monitoring, etc. Research will explore these issues in the follow-up study. We believe that the direction of the electricity reform is not going to change, With implementation of bilateral trade patterns in our country, these issues will continue to be addressed in practice. Thus, we must not only fully lessons learned abroad, do theoretical research, but also need a fear of setbacks and the courage to practice.