Congestion Management In China Power Market

Power is sent to users from the generator though transmission lines, when current on one line meet or exceed the limits of its transmission capacity, the phenomenon of transmission congestion will occur. Congestion segregates electricity market and weakens competition mechanism, which causes invalidation generating costs, and thus makes market less efficient. In order to eliminate transmission congestion, a series of rules should be established. The rules control generators and loads effectively and make the system have certain safety and reliability, as well as provide effective information for the long-term investment. In China, because of the existing of relative weakness, unreasonable structure and the serious resources limitation in transmission network capacity, transmission congestion problem is easier to arise under the circumstance of power market. Effective transmission congestion management has an important function, the meaning to the safe of power system and the long-term, stable development of power market.Based on this, the paper has a farther development in transmission congestion management in power market environment.First, circumvention of market risk is very important in transmission congestion management. The FGR (Flow Gate Right) and FTR (Financial Transmission Right) are introduced into transmission congestion management, its concept and implement are discussed in the paper. It provides the valid means of evadable price risk for the market participant. They can make trading decisions more rationally, which reflects the power market is fair, justice and open principle.Second, most of existing methods have been classified, analyzed and compared. In accordance with China's power market, the weighted average of the nodal prices base on electricity tracing theory is put forward which makes the buying price is the weighted average of the generator nodal prices that provide power to users. It can eliminate merchandise surplus, play the function of power market adjust itself and promote ISO (Independent System Operator) scheduling system effectively from economic point.Third, in power market, congestion management is not only to solve the network constraint, it is also necessary for the reasonable price of congestion cost, and congestion cost allocation fairly between market participant. This article describes the characteristics of two kinds of cost allocation method Aumann-Shapley and Shapley which base on game theory. As Aumann-Shapley allocation method caused merchandise surplus more than congestion cost, increased the burden on both sides greatly. Therefore Chinese power market is proposed to use Shapley method.