Proceedings of the 2nd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2023, September 1–3, 2023, Chongqing, China

Research Article

Analysis of the Impact of Different Hydropower Pricing Models on Unified Market Settlement in Hunan

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  • @INPROCEEDINGS{10.4108/eai.1-9-2023.2338782,
        author={Binkun  Xu and Shichao  Shao and Yiling  Hou and Jing  Liao and Junhui  Wu and Chengqing  Gui},
        title={Analysis of the Impact of Different Hydropower Pricing Models on Unified Market Settlement in Hunan},
        proceedings={Proceedings of the 2nd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2023, September 1--3, 2023, Chongqing, China},
        publisher={EAI},
        proceedings_a={ICPDI},
        year={2023},
        month={11},
        keywords={electricity spot market; coal price volatility; high proportion of hydropower; spot market simulation; unit profitability},
        doi={10.4108/eai.1-9-2023.2338782}
    }
    
  • Binkun Xu
    Shichao Shao
    Yiling Hou
    Jing Liao
    Junhui Wu
    Chengqing Gui
    Year: 2023
    Analysis of the Impact of Different Hydropower Pricing Models on Unified Market Settlement in Hunan
    ICPDI
    EAI
    DOI: 10.4108/eai.1-9-2023.2338782
Binkun Xu1, Shichao Shao1, Yiling Hou2, Jing Liao2, Junhui Wu3,*, Chengqing Gui3
  • 1: State Grid Hunan Electricity Power company limited economic and technical research institute
  • 2: State Grid Hunan Electricity Power company limited economic and technical research institute, Changsha
  • 3: Huazhong University of Science and Technology
*Contact email: wjh1998@hust.edu.cn

Abstract

This article introduces the basic situation of Hunan Province, where hydropower resources are relatively abundant. To reduce the impact of market reform, it is necessary to reasonably consider the evolution path of hydropower bidding mechanism. Therefore, this article first summarizes the hydropower participation modes in hydropower-rich areas. The results show that foreign countries have not set up special price competition mechanisms for the problem of hydropower and thermal power bidding together, while the impact of direct hydropower and thermal power bidding together needs to be considered in China, and related special mechanisms are introduced for this purpose. Then, the article introduces the form of agent purchase under unified settlement, and designs three pricing models: hydropower not participating in the market, hydropower participating in the market as a price taker, and hydropower adopting the excess profit distribution mechanism. Finally, a spot simulation model is used to conduct market clearing based on the actual boundary conditions of a certain day, and the electricity matching and cost situations under different bidding modes are analyzed. The results show that adopting the excess profit distribution mechanism has a certain effect on the market transition.