Research On Policy Of Capacity Payment On The Basis Of Electricity Industry Equilibrium

In the traditional integrated electricity operation system, the capacity investment which is generally included in national or local development plan is implemented administratively. Given there isn't capital constraint, traditional system can guarantee enough capacity investment. That is why many countries adopted traditional system to some extents. But the traditional system has low efficient supply. In order to solve the problem, many countries in the world started to deregulate the electricity industry. At the same time, some market mechanisms were proposed, capacity payments is one of them. Whether capacity payments can go well with market competition model and market construction is the important issue in present electricity market theory and practice.Firstly, the thesis introduced the knowledge of capacity payments and described the research about the theory and practice of capacity payments domestic and abroad. Secondly, it described and compared the relative mechanisms, and concluded the practicality of capacity payments. Thirdly, it introduces the main mechanism---Real Options and listed some relative mathematic knowledge. Fourthly, in the basis of uncertain demand and Cournot game the paper constructed the model of short-run capacity investment, long -run game equilibrium and long-run industry equilibrium. The model included the parameter of capacity price which is the most important in the paper. The last part of the paper extendedIn this paper, model concludes that: monopolistic competition in the oligarchy in the capacity of long-term investment will reach Game match. By the capacity of electricity price adjustment policies, the power industry will achieve long-term balance. But if the price of capacity remains unchanged, unless it could set up a fairly accurate, otherwise it will create long-term over-investment or under-investment in capacity. As the competition from the monopoly model to perfect competition changes, with the number of enterprises increase, the power industry balance can be done sooner, and more efficient; By changing the parameters and simulated a single system, it shows that single price system will lead to long-term power generation capacity will be seriously inadequate.