Cost-benefit Analysis Of Electricity Market Mechanism Considering Renewable Energy

Since the publication of a policy document named “Several suggestions on further deepening the power system reform”,this round of power system reform has made an important breakthrough and gets phased achievements,such as 194 projects has announced in the power distribution business reform,the provinces have verification all the electricity transmission and distribution complete.However,there is a large gap between the realization of the policy document that “changing the power industry development mode and optimization of energy structure” and other targets,a market mechanism to promote renewable energy consumption has not established yet.It is a practical problem needs to be solved is that how to combine the need of transformation and upgrading of China's energy structure considering the promote of renewable energy development in the construction of electricity market mechanism.At the same time,the cost and benefit factors should be considered in the design of power market mechanism so as to increasing the scientific rationality of it.The research contents and conclusions of this article include the following aspects:First of all,which electricity market mechanism should be analyzed in this paper is determined through summarizing the mechanisms and characteristics of mature global electricity market in the world.There are three mechanisms to be analyzed,and they are the Node Marginal Price(LMP),the System Marginal Price(SMP)and the System Marginal Price with the Node Marginal Price.After that,the overall electricity market mechanism has been established including 3 parts: the medium-and-long term trading market clearing model,the day-ahead incremental spot market model and the real-time equilibrium dispatch model.At the same time,the real-time equilibrium dispatch model has a bi-objective function which has realized the goals of the least system cost and the least amount of discarded wind power.Finally,electricity market trading simulations under various electricity market mechanisms in the IEEE 6-bus standard test system are conducted.The results show that,the power market mechanism of LMP clearing is conducive to the development of renewable energy and power industry,the power market mechanism of system marginal price + marginal price clearing is conducive to the development of coal enterprise,the power market mechanism of clearing system marginal price is conducive to the development of electricity retail companies.The result also indicate that,the node marginal price mechanism can minimize the total cost of the power system when the system efficiency is certain.Besides,the driving force for the development of the power industry comes from the increasing of users load.