Research On The Two-part Peaking Tariff Of Natural Gas Power Generator

Renewable energy has a rapid development in China.However,most of the renewable energy are intermittent,random,and anti-regulating,thus it will impact the reliability of the power grid.Besides,it will also make the peak regulation more difficult.Due to the environmental requirement in China,coal-fired power units are restricted.Gas-fired power units are of high efficiency,environmental friendly,rapid start-up performance,and flexible operation.Thus,gas-fired power units are suitable for peak regulation.However,the internal costs of gas-fired power units are much higher than coal-fired power units,meanwhile,its external costs haven't been accounted effectively.Besides,the compensation mechanism for peaking units has greatly affected the enthusiasm of peaking units.Therefore,a scientific pricing mechanism for gas-fired peaking units should be established to incentivize them to provide high-quality and sustainable peaking ancillary service for power grid,as well as provide favorable conditions for the grid to accept a greater proportion of renewable energy.At present,the compensation mechanism for peaking units is inadequate in China.The paid peaking range is defined only for coal-fired and hydro peaking units.Due to the well-developed power market mechanism and mature gas power generation technology,gas-fired units can bid in ancillary service market,and be rewarded by the peaking service.Therefore,in order to change the current status of the shortage of peaking compensation mechanism and the compensation approach for gas-fired peaking units,the technical and economic features of gas-fired units in different operating mode are analyzed.Based on that,this paper analyzed the technical advantage for gas-fired peaking units and the economic deficiencies under the current market environment in China.Meanwhile,this paper proposed the definition of paid and unpaid peaking service of gas-fired units.Based on the operation period pricing theory,a two-part peaking tariff model is established for gas-fired peaking units.The different quantity prices for paid and unpaid peaking service are defined to compensate the depth peaking service.The capacity price is set to compensate the additional start-up peaking cost and other fixed costs.To verify the model,the two-part peaking tariff of a gas-fired peaking power plant is measured.Meanwhile,the paper analyzed the factors affecting the quantity price and capacity price,and verified the cost recovery effect of capacity price and the depth peaking incentives effect of quantity price in this model.