Cost and benefit analysis on direct electricity purchase transaction based on probabilistic production simulation

Direct electricity purchase (DEP) is an important transaction mode in electricity market, and also a measure to promote electricity industry reform in China. DEP profoundly affects system operation and dispatch. Aiming at this, analysis and calculation on DEP cost and benefit is conducted. Probabilistic production simulation is adopted for its wide application in power system cost analysis, reliability evaluation and electricity price forecast, etc. Generating units in DEP do not follow centralized dispatch and take no load not belonging to specific DEP. As generating units in pool trade (PT) can take unmet load in DEP, idea of interconnected power system is adopted to divide the system into two types of sub-systems based on different transaction modes, i. e. DEP and PT systems. Transmission capacity of tie line is 0 for direction from DEP to PT system, and infinite from PT to DEP system. Wind power participating in PT and DEP are both considered. EPRI-36 unit system is utilized to verify applicability of the proposed method. DEP cost and benefit are evaluated, providing beneficial references for market-operating and policy-making.