Allocation Method Of Compensation Benefits Among Hydropower Plants In Electricity Market

With the advance of China's power market reform, as a key component of the national power industry, the hydro power is bound to take part in the market competition. In regards to their characteristics, participation of hydroelectric utilities in market competition is a process of continuous exploration; there are many issues that need to be investigated. Two important issues particularly draw attention: First, whether the compensation benefits among plants that can be substantial in the traditional way under centralized control can be retained; Second, if so , how to make a reasonable division of compensation among the participating power plants, thus able to inspire participants, but also to improve water efficiency.This paper will study these two issues, analyzing long-term optimal scheduling of allied reservoirs, integrated with the Yangtze River power dispatch software. Some valuable theoretical results have been obtained. First, the optimal operation and compensated regulation of a large-scale group of power stations have been studied. The effective combination of the appropriate improvement of algorithm with the actual problem, to a certain extent, solved that the optimization process converges slowly, owing to the hydraulic connection between cascaded plants. Then, the method used to allocate the compensation benefits is discussed in the paper. In reference to the research results, based on cooperative game theory means, the Shapely Value method is applied to the allocation of electricity market-based compensation benefits. On this basis, the paper assesses the impacts of different allocation methods on the implementation of compensate regulation. In particular, in the case of large-scale reservoir group, Shapely Value results the exponential growth of calculation. The statistics theory is introduced, from Shapely L.S. and Aumann R.J.'s thought, methods for calculating the Shapely Value is gropingly improved in the game of various plants, making the allocation method more practical.