Theory And Practice Of Zonal Pricing In Power Market

Pricing Mechanism used as an invisible hand has an essential effect on resource allocation in power market.The paper makes a research in theory and practical application situation of zonal pricing which is an important kind of pricing mechanism in spot power market.The benefit of zonal pricing is verified through theory and practical situation analysis: zonal pricing theory could provide more accurate price signal than unique pricing or simpler price signal than nodal pricing.In the operation of electricity power market,the rational and accurate partitioning of price zones will be the premise to obtain the object of zonal pricing management.To achieve the goal of zonal pricing,the paper took node geographic position with load level and power flow transfer distribution factors as features of node,by means of Two-step clustering method for realizing stable and rational price zone partition quickly and accurately.Case study of IEEE 14 node system and a practical system in China shows the proposed zone definition method is effective and practical.