Abstract
In the electricity spot market using the locational marginal price, the congestion component of locational marginal price reflects the congestion cost of lines and cross sections, which encourages the market entities to participate in the congestion management. In addition to forming reasonable and accurate price signals, it is an important link of congestion management to establish an effective congestion risk management mechanism. Considering the actual characteristics and demands of current electricity spot markets in China, the settlement right transaction mechanism for the congestion risk management is proposed. The power plant can trade the settlement right to a specific power quantity with other power plants and consumers, and then it can acquire the settlement right in a specific electricity price to hedge against congestion risks of settling with the locational marginal price. Compared to the mature electricity spot markets at foreign countries, where mechanisms such as financial transmission right transaction are established from the perspective of managing the uncertainties in refunding of congestion surplus, the settlement right transaction mechanism is derived from the view of addressing the uncertainties in congestion charges, which realizes the reallocation of congestion risks between the two trading parties. This settlement right transaction mechanism is more suitable for the current electricity spot market in China, which has characteristics such as the sequential settlement of medium- and long-term contract trading and spot market trading, the delivery node of medium- and long-term contract transactions being uniquely set at the demand-side unified settlement node, and the suppliers confronting with greater congestion risks. Case studies further verify the feasibility and effectiveness of the settlement right transaction mechanism.
| Translated title of the contribution | Application of Settlement Right Transaction in Congestion Management under Electricity Spot Market |
|---|---|
| Original language | Chinese (Traditional) |
| Pages (from-to) | 123-132 |
| Number of pages | 10 |
| Journal | Dianli Xitong Zidonghua/Automation of Electric Power Systems |
| Volume | 45 |
| Issue number | 6 |
| DOIs | |
| State | Published - 25 Mar 2021 |