Abstract
Electricity is divided into several blocks according to its continuation time, and each block traded with its unique price, this is called block trading. And the traditional trading method is called hourly trading which trade electricity hour by hour. The electricity blocks with different continuation time have different cost and contribution to the safety of power systems. So the block trading method is introduced into bilateral contracts including forward contracts and future contract. Generators and customers can select the electricity blocks to trade according to their requirement. The analysis of block trading in bilateral contracts shows that it is suitable for the generation and consuming of electricity in power systems and block trading can supply customers with cheaper electricity compared with hourly trading method. The block flexible electricity contract is selected to contrast block trading and traditional hourly trading quantitatively. The comparison indicates that the selection of block can significantly influence the contract price and block trading can improve the efficiency of bilateral market.
| Original language | English |
|---|---|
| Pages (from-to) | 13-16 |
| Number of pages | 4 |
| Journal | Dianli Xitong Zidonghua/Automation of Electric Power Systems |
| Volume | 28 |
| Issue number | 11 |
| State | Published - 10 Jun 2004 |
Keywords
- Bilateral contract market
- Block trading
- Electricity market
- Forward contract
- Futures contract