Research Article
Design of a Scarcity Pricing Mechanism for Electricity Market Based on Price Increment Pattern
@INPROCEEDINGS{10.4108/eai.26-5-2023.2334352, author={Long Wang and Yue Zhao and Qiuna Cai and Chao Gong and Hai Ye and Ping Yang}, title={Design of a Scarcity Pricing Mechanism for Electricity Market Based on Price Increment Pattern}, proceedings={Proceedings of the 2nd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2023, May 26--28, 2023, Nanjing, China}, publisher={EAI}, proceedings_a={MSEA}, year={2023}, month={7}, keywords={electricity market; scarcity pricing; mechanism design}, doi={10.4108/eai.26-5-2023.2334352} }
- Long Wang
Yue Zhao
Qiuna Cai
Chao Gong
Hai Ye
Ping Yang
Year: 2023
Design of a Scarcity Pricing Mechanism for Electricity Market Based on Price Increment Pattern
MSEA
EAI
DOI: 10.4108/eai.26-5-2023.2334352
Abstract
In high-proportion renewable energy power systems, the existing marginal unified clearing mechanism based on a low-price cap in the electricity spot market can lead to trading welfare losses and the inability of clearing prices to reflect the supply-demand relationship during scarce periods, resulting in insufficient flexibility and capacity adequacy of the power system. To address this issue, this paper proposes a scarcity pricing mechanism for the electricity market based on a price increment pattern, which combines an operation reserve demand curve (ORDC) to establish a time-point scarcity electricity price calculation model. Additionally, a creative price risk prevention mechanism consisting of multiple modules is introduced to transform the reserve scarcity signal into a reasonable price increment during market clearing, fully restoring the scarcity signal of electricity, thereby improving market trading surplus welfare, promoting system flexibility, and capacity adequacy. Simulation examples verify that this mechanism can effectively meet the needs of new power systems for power generation capacity adequacy, reliability, and flexibility, and sensitivity analysis reveals the impact of key parameters on the implementation effect, providing reference value for the implementation of the mechanism.