Hydropower In The Study Of The Southern Regional Electricity Market Transactions

Along with the forward of power market construction in China, hydroelectricity taking part in the power market competition is the inevitable fact that we have to face in the proceed of power market construction, especially in the southern area where hydroelectricity takes a large proportion. In accordance with "the Eleventh Five-Year Plan for National Economic and Social Development (Draft)", China is going to construct a society which is economic in resources and friendly in environment. Since hydroelectricity is a clean natural resource, it must be used rationally and efficiently. There are many differences in characteristics between hydroelectricity and thermal power such as the uncertainty of water supplying of hydroelectricity, the functional divergences among reservoir adjustments, the integrated uses of reservoir, the dispatching of the stairs between the upper and lower reaches and their competition coordination, and etc. So there must be a lot of problems need to be confronted when hydroelectricity takes part in the power market competition.In the light of those problems and feasible schemes, the Southern Power Market Research Team, which is organized by the Southern Electric Power Supervision Bureau, has done a lot of works. Basing on that, this paper will do a further study and analysis in the light of the present research conditions in the field of power market theory researching. And this paper aims to do some valuable exploitation for hydroelectricity taking part in the competition in the southern power market through the following schemes:Firstly, in view of that the living southern power market only accepts thermal power as a competitor in its market, hydroelectricity should become another subjective body in the second stage of its power market construction. Therefore, there will arise two cases in the competition of hydroelectricity. one is the competition between hydroelectricity and thermal power in the same market; and another is to open up an independent hydroelectricity competition market. Basing on the analysis of the two possible cases, this paper advances that hydroelectricity should compete with thermal power in the same power market but not in an independent one. However, in view of the tariff coordinated bidding between hydroelectricity and thermal power, this paper proposes to carry out a tariff limitation. Meanwhile this paper also makes analysis and description on the power volume proportion and the choosing of hydro-plants which are to be took part in the competition.Secondly, since in the process of market competition hydroelectricity will take part in various of marketing exchanges, while those exchanges will resolve into actual conditions of the out-put curves of generating plants, so resolution models will be constructed. They are the models that can resolve electricity yearly as per years of generating plants' monthly distribution conditions; the models that carry out yearly and monthly electricity resolution as per years of generating plants' daily distributionconditions among months; the models that carry out hourly electricity resolution as per peak, flat, valley hours in accordance with the load curves of the system. The contacts and transference between electricity —out-put will be realized.Thirdly, the uncertainty of water supplying in hydroelectricity will inevitably bring risks to plants for implementing contracts. And when there are still tariff decreasing spaces in thermal power operating, throwing water away is against the resource policy made by the country. In these cases, this paper proposes to construct a Generation Right Exchanging Market and a dispatching model in monthly generation right exchange market and yearly generation right exchange market. And the feasibility and equitability of this dispatching model are to be illustrated through specific examples. In order to implement the resources policy of the country when hydroelectric units still have the generating ability after market exchanging in flood season, the paper suggests purchasing hydroelectricity compulsorily.Fourthly, for the different drainage areas and plants with divergences in plants' capacity and adjusting functions, there will be market competition divergences as well. So it is better to carry out compensated assisting service competition when constructing assisting service mechanisms in the southern power market. So this paper proposes to construct a peak regulation right market. And combining with examples, the paper explains that the costs of generating units will be decreased for providing compensation to assisting services; providing relating economic profits to the plants with favorite adjusting functions and mobilizing their activities in taking part in peak regulation and frequency modulation in the system.There has no mature marketing mode for hydroelectricity taking part in tariff competing grid with thermal power yet. Whereas, the power markets abroad have different management mechanisms, different organizing structures and marketing proceeding, so their marketing modes is not in accordance with the actual conditions in China. Therefore, it must be meaningful to realize optimization of hydro and thermal power through marketing competition and then to serve for the coordinated social and economic development.