Comparative Analysis And Evaluation Of Main Bidding Mechanism In Power Generation Market

Since the late 1980s,every country has been making unremitting efforts to achieve electricity marketization.In power market transactions,the main bidding mechanisms used in most countries around the world are MCP bidding mechanism and PAB bidding mechanism.These two mechanisms have their own advantages and disadvantages.However,there is no definite agreement about the absolute superiority between the two mechanisms,meanwhile,which one is more suitable for the development of power market has not reached a uniform conclusion.Therefore,in order to solve this problem,it is particularly important to make a comparative analysis and evaluation of the two mechanisms through a reasonable and scientific comprehensive evaluation system.By referring to and analyzing the literature on the main bidding mechanisms in power generation market at home and abroad,this paper summarizes the current research of the bidding mechanisms and its comprehensive evaluation methods,and concludes the judgments of scholars on the advantages and disadvantages of them.Subsequently,this paper introduces the relevant theories of power generation market,including the definition,characteristics and elements of power generation market,analyses the cost and profit of power generation companies,and establishes profit calculation models.Then,starting from the characteristics of power generation market and based on its principles,the index selection and refinement are carried out in terms of stability,efficiency,transaction and sustainable development whose calculation formulas of each index are also put forward to facilitate the relevant quantifications.Finally,the comprehensive evaluation model for evaluating the bidding mechanism of PAB and MCP is determined by screening the indicators.Under different evaluation angles,the analytic hierarchy process(AHP)is used to calculate each index to get the final weight value respectively.On this basis,market-bidding process is simulated under different market demands.Based on the quantification of each index in the evaluation system,this paper compares and analyzes the performance of each index under the bidding mechanism of MCP and PAB.This paper collates,screens and calculates a large number of data generated by each generation company in the bidding process,applies it to qualitative and quantitative analysis of each index under different evaluation weights,and makes a comprehensive evaluation and analysis of the two mechanisms.In this evaluation model and market simulation environment,the comparative analysis shows that the market power of power generation companies under MCP mechanism is higher than that under PAB mechanism.The bidding index and clearing price fluctuation index are higher,and the competition among power generation companies is more intense,all of them are actively adjusting bidding strategy.In PAB mechanism,each power generation company settles based on its own bidding price,therefore,the overall bidding price level is higher than that of MCP mechanism,but the stability of PAB mechanism is better.After comprehensive evaluation,it is found that when the weights of transactional indicators are the largest,the comprehensive performance of each indicator under PAB mechanism is better than that under MCP mechanism.When the weights of stability indicators hold the biggest share,MCP mechanism is better than PAB mechanism under the condition of low market demand,but when the market demand is strong,the comprehensive performance of each indicator under MCP mechanism is slightly lower than that under PAB mechanism.When the weights of efficiency indicators are the largest,the comprehensive performance of each index under the two mechanisms is comparative.