Study On Bilateral Transaction Of Electric Power Multilateral Trading Market In Inner Mongolia

China is to deepen the reform of the power market, and some area of China have just launched bilateral power transaction markets, for example, Inner Mongolia Electric Power multilateral trading market has been launched in May 2010. Bilateral transactions are the main transactions in power market. At present, the theories about bilateral transactions are not much, and most of them have not considered the transmission and distribution price. This thesis is based on the actual situation of the electricity market in Inner Mongolia, mainly about the optimization and matching of bilateral transactions in power market and fixes the price of power transmission and distribution.An area oriented model of fixing the transmission and distribution price is brought out in this thesis. The model is base on the structure of the Inner Mongolia grid, the settlement of the transmission and distribution price and the grid data. The model partition the Inner Mongolia grid into many parts, the cross-transmission between two parts should charge an additional fee which is decided by the flow change of the grid because of the transaction. The trading procedures of bilateral transactions in the multilateral trading market have been study in the thesis, and then a bilateral transactions model has been brought out. The model context two parts:the bilateral transactions matching and the optimization of the result of bilateral transactions. The two parts correspond to pre-and post-trade transaction. The bilateral transactions matching using the high and low matching method and the optimization of the result of bilateral transactions using the model of transport in Linear Programming.According to the data of the example, the area oriented model can get transmission and distribution prices which can require the functions the transmission and distribution price should be. That means the fixing method of pricing can reach the intended purpose. Also the bilateral transactions matching method can effectively carry out the transaction match and the optimization model can reduce transaction costs of transmission and distribution fees.