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A Mechanism Framework for Clearing Prices in Electricity Market Based on Trusted Capacity of Power Generation Resources

Author

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  • Yuanyuan Lou

    (Guangdong Power Grid Co., Ltd., Guangzhou 510600, China)

  • Jiekang Wu

    (School of Automation, Guangdong University of Technology, Guangzhou 510006, China)

  • Zhen Lei

    (School of Automation, Guangdong University of Technology, Guangzhou 510006, China)

  • Xinmiao Liu

    (Guangdong Power Grid Co., Ltd., Guangzhou 510600, China)

  • Junlei Liu

    (Guangdong Power Grid Co., Ltd., Guangzhou 510600, China)

  • Xun Lu

    (Guangdong Power Grid Co., Ltd., Guangzhou 510600, China)

Abstract

A reasonable capacity market mechanism is conducive to exploring the capacity value of different power generation resources and ensuring the adequacy of power supply capacity in power systems. In response to the challenges faced by the existing capacity market mechanism under the background of energy transformation, such as the unreasonable quantification of the support effect of different power generation resources on the power capacity of power system and the imperfect pricing mechanism of power capacity, a capacity market mechanism for power systems with high proportion renewable energy has been designed. To quickly clarify the capacity support effect of different power generation resources, a capacity credibility factor is introduced to quantify the actual contribution of different power generation resources in capacity supply and to deeply explore the capacity value of power generation resources. Based on the uniform marginal clearing price in the capacity market, the marginal clearing price of different power generation resources is corrected by using the cost ratio factor, which includes the difference in the cost structure of power generation resources. By comparing and analyzing examples, the proposed cost ratio factor can effectively optimize the capacity price; the maximum price difference is 18.2 yuan/MW, the overall capacity cost of the system is reduced by 53.70%, and the effective connection between fixed cost and variable cost of power generation resources is realized.

Suggested Citation

  • Yuanyuan Lou & Jiekang Wu & Zhen Lei & Xinmiao Liu & Junlei Liu & Xun Lu, 2025. "A Mechanism Framework for Clearing Prices in Electricity Market Based on Trusted Capacity of Power Generation Resources," Energies, MDPI, vol. 18(2), pages 1-25, January.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:2:p:223-:d:1561391
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    References listed on IDEAS

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    3. Zech, Matthias & von Bremen, Lueder, 2024. "End-to-end learning of representative PV capacity factors from aggregated PV feed-ins," Applied Energy, Elsevier, vol. 361(C).
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