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Key Issues and Technical Applications in the Study of Power Markets as the System Adapts to the New Power System in China

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  • Jun Dong

    (Beijing Key Laboratory of New Energy and Low-Carbon Development, School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Dongran Liu

    (Beijing Key Laboratory of New Energy and Low-Carbon Development, School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Xihao Dou

    (Beijing Key Laboratory of New Energy and Low-Carbon Development, School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Bo Li

    (The State Key Laboratory of Power Transmission Equipment & System Security and New Technology, School of Electrical Engineering, Chongqing University, Chongqing 400044, China)

  • Shiyao Lv

    (Beijing Key Laboratory of New Energy and Low-Carbon Development, School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Yuzheng Jiang

    (Beijing Key Laboratory of New Energy and Low-Carbon Development, School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Tongtao Ma

    (Beijing Key Laboratory of New Energy and Low-Carbon Development, School of Economics and Management, North China Electric Power University, Beijing 102206, China)

Abstract

To reach the “30·60” decarbonization target (where carbon emissions start declining in 2030 and reach net zero in 2060), China is restructuring its power system to a new energy-based one. Given this new situation, this paper reviews previous studies on the power market and highlights key issues for future research as we seek to adapt to the new power system (NPS). Based on a systematic literature review, papers on the operational efficiency of the power market, participants’ bidding strategies and market supervision were identified. In a further step, papers with high relevance were analyzed in more detail. Then, key studies that focused on market trading under China’s new power system were picked out for further discussion. New studies were searched for that pertained to new energy mechanisms and bidding, the transition from coal-fired power, flexible resources and the technical applications of simulations. The quantitative analysis supports the construction of a basic paradigm for the study of power markets that is suitable for the new power system. Finally, the theoretical basis and application suggestions for power market simulations are introduced. This study summarized the existing research on the power market and further explored the key issues relating to the power market as it adapts to the NPS, hoping to inspire better research into China’s power sector, and promote safe, low-carbon, and sustainable development in China’s power industry.

Suggested Citation

  • Jun Dong & Dongran Liu & Xihao Dou & Bo Li & Shiyao Lv & Yuzheng Jiang & Tongtao Ma, 2021. "Key Issues and Technical Applications in the Study of Power Markets as the System Adapts to the New Power System in China," Sustainability, MDPI, vol. 13(23), pages 1-29, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13409-:d:694467
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