Transmission Pricing And Regulation In Power Market

As the social technology grows fast, great changes have taken place in the power industry. The old power system is now no longer sufficed for the growing wants of the new markets. During the past two decades, many countries carried out reforms in power structure, and many different models of power system formed. Although they are seemed different, they have the same goal to take competition into the monopoly power companies and establish the power market. Separation of generation and transmission is an important direction of reform. Since network separated from plants, power distribution, and transmission has become independent entities, transmission pricing has become necessary. Accurate pricing is the important part as transmission services play a central role. Perfect transmission services pricing is the key step breaking monopoly in electricity industry.This paper introduces the reason of establishment of power market and development situation, analyzes the characteristics of transmission market and points out the necessity of transmission pricing, then it introduces the current developments of the method for transmission market and gives out some analysis. It also summarizes the methods of transmission pricing laying the groundwork for the new method given up in the following passage. Besides it gives a detailed account of the pricing model of PJM power market in America and offers an example. Based on the introduction before, a new short marginal pricing method is brought up and another example is given. From the example, we have to regulate the transmission price. This thesis gives us some information about power regulation, and tells us the formation progress of the cap price. Besides, it also points out the drawbacks in regulation.At the ending part, this paper presents conclusions, some defects of the paper itself and some questions to be further discussed.