A generation directrix-based regulation energy market mechanism for fairer competition in power systems with high renewable energy penetration

Building a power system with a high penetration of renewable energy is the prevailing developmental trajectory of most countries. However, the current electricity spot market mechanism is predominantly tailored for conventional generators (CGs, e.g., thermal units), which ignores the notable differences between renewable energy sources (RESs) and CGs in terms of generation cost and adjustment capability. Consequently, RESs benefit from priority in market-clearing without assuming regulation responsibility during the bidding process alongside CGs, thereby impacting the fairness of the spot market. In this paper, we propose the concept of RES generation directrix (RGD) to quantify the regulation responsibility that RESs need to bear when participating in the spot market. Subsequently, a regulation energy market is introduced in the spot market to reshape the power generation curve of RESs. Finally, the validity of the proposed market mechanism is verified across different test systems. Numerous experiments indicate the proposed RGD-based market mechanism provides a more level playing field for RESs and CGs, helps form an independent offer price for RESs, thereby relieving the “missing money” problem and prolonging the effectiveness and sustainability of electricity spot markets.