Transmission Network Expansion. Node Pricing Incentive Model Selection

Take our country electricity industry reform "separate power plants and power grids" at the end of 2002 as a sign,our country electricity industry has reformed nearly 7 years.We have achieved some better performanc and we also have gained most valuable experience in this regard. Currently, the National Development and Reform Commission is leading the development of deepening the power tariff reform program, its long-term goal is to really establish a market-oriented price formation mechanism. Node pricing has been implemented in east China now, with remarkable results. When the conditions are ripe, the node pricing will dominate China's electricity market. In taking the node pricing, which our country's electricity market structure will be taken to be the most conducive to the goal of establishing a market-oriented price formation mechanism and which incentive mechanism should be taken to make the transmisson network expansion planning more effective are two questions should be considerd seriously. This paper proceeds its analysis based on how to solute the two questions,hope to provide some useful suggestions to the market-oriented reforms of the power industry.In this paper,to solve the model selection problem of how to stimulate transmisson network expansion under the node pricing,we explore in two aspects:Based on the control mechanism and market-based mechanism.In the matter of Based on the control mechanism, The first considered problem is the expansion of under three nodes network structure. Two kinds of cases are considered due to the government is not clear about the company's cost type:situations of complete information and asymmetric information; by the same time, under the three-node network structure, there are two companies involved in network expansion,and the issue of collusion problem between companies has just emerged.In this paper, we establish mathematical programming model separately to these four kinds of situations, futhermore to slove and compare the results. The results show that:total social welfare will be decreased when companys act in collusion.We should try our best to reduce the probability of collusion.For example,we can increase cost of communication between the companys appropriately.Also,to verify the accuracy of the conclusions,the three-node network structure is extended to multiple-node network.In the matter of Market-based mechanism, First,the transmission network expansion investment issues are explored under the three-node network structure;secondly,the vertical integration model of the transmission network expansion incentive problems under the three-node network structure are explored.The purpose of this paper is to obtain which kind of model is better by comparing the results under the two kinds of modes.Comparing the results, we found that it is feasible to adopt a market-based mechanism for China's power transmission network expansion under the node pricing. If market-based mechanism is adopted, and the transmission network expansion companies can receive payment from the financial transmission right,we can not say that will lead the transmission network expansion capacity to greater downward distortion.Analysis of eastern China power grid company by using practical calculation example,revealed that:eastern China power grid company possess huge development potential of net trade flow.However, the control mechanism restrict the power floating;on the other hand, Market-based mechanism is better for the power resource distribute equitably.By implication eastern China power grid company's transmission and distribution price,we see the control mechanism will increase the cost of transmission and distribution.Background of "separate power plants and power grids", control mechanism is not conducive to the power grid action,decrease the efficiency. Analysis of the model results and the exampe of eastern China power grid company,we can verify the result:Market-based mechanism is more suitable,can increase the market benefit.Analysis of the transmission networks,we get that:the control mechanism restrict the power network investment;on the other hand,Market-based mechanism can extend more channels for raising funds.