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The development of renewable energy in China has made remarkable achievements, but the problem of renewable energy consumption has become increasingly prominent. This paper establishes a power market trading system for renewable energy, with the aim of promoting large-scale renewable energy consumption and increasing the enthusiasm of renewable energy producers and users to participate in market transactions. First, according to the power generation cost, the backup cost of renewable energy power plants and the possible quotation strategies of other renewable energy producers, a quotation model of renewable energy producers is established. In the clearing of the spot market by renewable energy producers, the independent market operator conducts the first-stage clearing of the electricity market with the goal of maximizing social welfare. After the announcement of the clearing results, the renewable energy producers that did not win the bid will revise their quotations and carry out the second stage clearing to realize the consumption of renewable energy. In this paper, the particle swarm algorithm combined with the CPLEX solver is used to solve the problem, and finally, different scenarios are analyzed through example analysis. The results show that, compared with the conventional power market trading mechanism, the energy abandonment rate of the power market trading mechanism for renewable energy proposed in this paper drops from 8.2% to 2.1%, and the profit margin of renewable energy producers increase by 6.6%. It is demonstrated that the proposed electricity market mechanism can effectively promote the consumption of renewable energy and increase the income of renewable energy producers. [ABSTRACT FROM AUTHOR]

The launch of the national carbon emissions trading (CET) market has resulted in a closer relationship between China's CET market and its electricity market, making it easy for risks to transfer between markets. This paper utilizes data from China's CET market and electric power companies between 2017 and 2023 to construct the spillover index model of Diebold and Yilmaz, the frequency-domain spillover approach developed by Barun'ik and Křehl'ik, and a minimum spanning tree model. The comparison is made before and after the launch of the national CET market. Subsequently, this paper examines the market spillover effects, as well as the static and dynamic properties of network structures, considering both the time domain and frequency-domain perspectives. The research findings suggest the following: (1) There is a strong risk spillover effect between China's CET market and the stock prices of electric power companies; (2) There is asymmetry in the paired spillover effects between carbon trading pilot markets and the national CET market, and differences exist in the impact of risk spillovers from power companies between the two; (3) The results of the MST model indicate that the risk contagion efficiency is higher in the regional CET pilot stage compared to the national CET market launch stage, with significant changes occurring in key nodes before and after the launch of the national CET market; (4) Both the dynamic spillover index and the standardized tree length results demonstrate that crisis events can worsen the risk contagion between markets. Besides offering a theoretical foundation and empirical evidence for the development of China's CET and electricity markets, the findings of this paper can provide recommendations for financial market participants as well. [ABSTRACT FROM AUTHOR]

In the face of the new reform of China's "unified electricity market", the frequency regulation ancillary service market in each region of China is still divided between using the MCP and PAB pricing mechanisms. The purpose of this paper is to explore the different impact the laws of the above two pricing mechanisms have on the frequency regulation market and to provide relevant suggestions for this electricity market reform. This paper simulates the competitive activities of the frequency regulation market based on the multi-agent simulation model, conducts a comparative experiment by changing the pricing mechanism to a single variable based on the rules of the Sichuan frequency regulation market in China, and concludes that MCP can make the market fast and stable, and that its market settlement price is low, which is suitable for the "unified electricity market". Although PAB makes the market settlement price high, it can ensure the retention of high-performance units in the market, and the stable settlement price makes this model able to accurately reflect the "price signal", making it suitable for late adoption in the "unified electricity market". [ABSTRACT FROM AUTHOR]

The introduction of the new round of electricity reform policies has made the electricity sales companies' trading environment increasingly complex. In the medium- and long-term market and spot market, following the new policy-oriented optimization of trading decisions is the focus of electricity sales companies. The main objective of this study is to consider the impact of the latest policies of China's current electricity reform on each subject of electricity trading and to propose a method for electricity sales companies to make optimal decisions on renewable energy source (RES) power and conventional energy source (CES) power mixed with power trading in the medium- and long-term and spot markets to improve the efficiency of electricity market trading, promoting the consumption of renewable energy and helping the synergistic development of the electricity market and the tradable green certificate (TGC) market. This paper first discusses the impact of the new electricity reform policies on the transactions of various subjects in the electricity market and constructs the model of the consumer utility function, the profit model of an electricity sales company, and the profit model of power generators with energy storage. Considering the complex power supply and demand relationship among the various subjects of the electricity market, a game model is established for the decision on mixed trading between the medium- and long-term market, the spot market, and the tradable green certificate market to minimize the comprehensive power purchase cost of an electricity sales company. To reduce the decision-making risk caused by the uncertainty of spot price, the prophet model is used to predict the spot price; finally, through the analysis of the decision-making model of the electricity sales companies, the optimal transaction decisions of the electricity sales companies in different trading periods and different scenarios are solved. The test results show that the proposed model can significantly improve the profitability of the electricity sales companies and provide a decision-making reference for electricity sales companies to participate in the medium- and long-term market and spot market. [ABSTRACT FROM AUTHOR]

The annual electricity trade scheduling is the basis of long-term power generation scheduling. In recent decades, the ratio of new energy generation in China has increased annually, and the electricity market has operated under the "market electricity" and "planned electricity" double track mode in recent years. However, the existing annual electricity trade scheduling methods are extensive and cannot adapt to the new situation of "market electricity" and large-scale new energy generation. The annual scheduled energy of the power units is set as a decision variable, and a novel annual energy scheduling optimization model based on Gini coefficient of fairness is presented in this paper. In this model, "market electricity" capacity is conversed monthly, considering peaking reserve demand and monthly characteristics of new energy generation. The fairness constraint set based on Gini coefficient is introduced into the optimization model to solve various fairness problems. Simulation results show that the introduction of the Gini coefficient and the optimization model considering the monthly conversion of marketing electricity capacity can obtain more accurate and reasonable electricity distribution results, and the peaking demand can be considered more fairly and effectively. The proposed method provides a feasible solution to the annual electric energy scheduling for dual-track operation country such as China. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the impact of space weather on China's electricity market. Based on data products provided by NOAA and the National Energy Administration in China, this paper uses solar wind velocity as a solar weather indicator and the disturbance storm time index as a magnetospheric weather indicator to match monthly Chinese electricity market data over 10 years. Based on a VAR model, we found that (1) space weather increases the demand for electricity in China, and solar wind speed and the geomagnetic index increase the electricity consumption of the whole of Chinese society, as space weather mainly increases the electricity consumption of the secondary and industrial sectors. (2) The geomagnetic index significantly promotes power station revenue. (3) Space weather is associated with increased energy consumption. The geomagnetic index significantly increases the coal consumption rate of fossil power plants in China, but the solar wind speed has nothing to do with the coal consumption rate of fossil power plants. [ABSTRACT FROM AUTHOR]

Chinese wind power policies have productively promoted the development of wind power and also promoted the process of wind power participation in electricity market transactions. However, with policy emphasis on investment and neglect of utilization, there have been some difficulties in the development of Chinese wind power. To highlight the guiding role of policy and improve the wind power policy system, an analysis of Chinese wind power policies is conducted in this paper. First, aiming at the main components of wind power chain, including wind power construction, grid connection, transmission, and sales, a comprehensive and systematic frame of Chinese wind power policy system is proposed from the three aspects of development planning, administrative management and market transactions. Second, the indicator system of Chinese wind power development effectiveness is extracted, including installed capacity, power generation, power utilization hours, carbon emission reduction, investment, on-grid power price, wind curtailment rate, etc., and the effectiveness of policy implementation is verified. Third, new policy recommendations are proposed from parts of transmission, consumption, and market, for the development of Chinese wind power industry in the 14th Five-Year Plan period and the goal to reach the crest value of carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. In this paper, advice to supplement and improve the Chinese wind power policy system is provided, which may it promote better development of Chinese wind power in the following decade from the policy point of view. [ABSTRACT FROM AUTHOR]

In order to accelerate the construction of a clean, low-carbon, safe and efficient energy system, China set the provincial weight of responsibility for renewable energy power consumption and established a renewable energy power absorption guarantee mechanism in 2019. As a market incentive policy, it has enduring effect on the low-carbon transformation of the power industry. Firstly, the operation mechanism of the renewable energy consumption guarantee mechanism is analyzed. The general framework, core elements and supporting measures are clarified. Secondly, a stock-flow diagram is constructed based on the system dynamics method. It contains the green electricity market sub-module, the green-certificate market sub-module and the excess power absorption market sub-module. Finally, multiple scenarios are set up to simulate the impact of the green-certificate market and excess power absorption market improvements on the installed capacity and tariff of China's green power market. The renewable energy guarantee mechanism is an effective means to promote the consumption of green electricity in China. In addition, in the short term the cost of electricity for users has increased, but in the long term the cost of electricity shows a fluctuating downward trend. This study provides theoretical references for the formulation of clean and low-carbon policy objectives in the power industry and the optimization of market mechanisms. [ABSTRACT FROM AUTHOR]

Since the 1980s, many electricity markets around the world have undergone restructuring aimed at improving efficiency. In 2002, the Chinese government also introduced a vertical unbundling reform to dismantle vertical monopolies and boost efficiency in the power sector. This study estimates the unified, operational, and environmental efficiency to comprehensively assess the impact of China's vertical unbundling on the production performance of thermal power firms. A non-radial data envelopment analysis (DEA) approach is employed to measure these efficiencies. Subsequently, a difference-in-difference model is used to assess the reform's effects. Empirical results show that the vertical unbundling improved the unified efficiency of firms. Further analysis indicates that the reform improved the operational efficiency of firms by increasing their capacity utilization and coal quality. Additionally, we find that the reform led to an increased utilization of source control technologies but resulted in a reduction in the use of end-of-pipe treatments. Due to the opposing effects on different pollution treatment stages, the reform did not have a significant impact on environmental efficiency. [ABSTRACT FROM AUTHOR]

Effective aggregation and rational allocation of flexible resources are the fundamental methods for solving the problem of an insufficient flexibility adjustment ability of a power system. The flexible scheduling resources of a distribution system are often small in scale and distributed mostly by different stakeholders. A virtual power plant (VPP) gathers small resources to participate in the day-ahead electricity market, but, due to the scale and characteristics of a VPP's internal flexible resources, it cannot reach the access threshold of a peak shaving market in some periods due to small differences. In order to solve the market bidding problem of a VPP limited by capacity, and to achieve economic goals, a virtual power plant operator (VPPO) not only needs to interact with internal subjects but also needs to interact with other subjects with flexible resources in the distribution network. In this study, an electric vehicle (EV) cluster is taken as the interactive object, and a day-ahead bidding strategy of a VPP with multi-level electric energy interaction is proposed. The VPP not only makes full-time game pricing for internal participants but also makes time-sharing bargaining with an EV operator. The validity and the rationality of the proposed strategy are verified by an example. [ABSTRACT FROM AUTHOR]

One of the most critical tasks of China's power sector reformation is re-designing transmission and distribution (T&D) prices, which are essential in establishing fair and ordered power markets and encouraging the efficient allocation of resources. In view of the problems in China's power market, such as the lack of a market mechanism for the reasonable allocation of congestion revenue, unreasonable transmission cost composition, and the failure of the transmission pricing mechanism to reflect the utilization degree of transmission resources by users in different geographical locations, this study proposes a transmission price design under the application scenarios of regional power grids and provincial power grids dominated by meshed AC networks in China that considers the marginal benefit of the transmission and spatiotemporal information of electricity demand. The proposed method effectively tackles the above-mentioned problem, with the transmission cost being divided into two parts: the expansion cost reflecting the marginal benefits of transmission, and the residual cost reflecting the rest. The expansion cost is objective and based on power system economics; it is calculated as the congestion revenue under the location marginal price-based wholesale electricity markets, resulting in a more reasonable division of transmission costs and allocation of congestion revenue. Furthermore, allocating the residual cost with the power flow distribution factor and the postage stamp method also reflects the utilization degree of transmission resources by users in different geographical locations. The effectiveness of this transmission price design is confirmed by testing it against a 3-bus and an IEEE 30-bus system. [ABSTRACT FROM AUTHOR]

Energy storage technology plays a significant role in the pursuit of the high-quality development of the electricity market. Many regions in China have issued policies and regulations of different intensities for promoting the popularization of the energy storage industry. Based on a variety of initial conditions of different regions, this paper explores the evolutionary process of electricity market players considering energy storage technology. The trilateral evolutionary game model is adopted to analyze the strategies of the power plant, the power grid, and the government. After assigning the model according to an actual situation, each equilibrium point corresponds to a real electricity market situation. The results indicate the following: (1) In the process of stabilizing, the role of "Advanced Imitators" leading the strategy of building energy storage changes between the power plant and the power grid. (2) In Eastern, Middle, and Southern China, the power plants and power grids on a greater-than-medium scale will choose to build energy storage without governmental regulations, due to the abundant net profit. (3) In the northeast of China, power plants with a medium-or-lower scale will choose not to build energy storage because of the relatively low on-grid price, and small power grids can make enough profits by operating energy storage facilities. (4) In Northern China, the large power plants and the medium power grids will choose to build energy storage due to the high electricity sale price and the resulting high profit. (5) In Western China, the small power plants and power grids cannot afford to build energy storage due to the low electricity price. The results lead to valuable policy suggestions for the local governments of China in promoting energy storage in the future. To meet the goal of energy storage popularization, regional electricity market plans need relevant policies based on its existing conditions, offering suitable external conditions for adding energy storage. [ABSTRACT FROM AUTHOR]

In response to the rising importance of the climate agenda, many countries have restructured their electricity markets to facilitate the utilization of renewable energy. China is an interesting case because it has expanded its utilization of wind and solar energy with unmatched speed. This review starts with an analysis of the 2002 reforms that uncoupled electricity production from transmission. The investigation covers the period leading up to the 2022 proposal, which aimed to build a nationally integrated electricity market. The analysis suggests that a careful alignment of incentives for key market players to produce and consume renewable energy is vital during the process of energy transition. The introduction of feed-in tariffs in 2009 for wind energy, which were subsequently extended to solar energy, stimulated a high growth in installed capacity. However, a high electricity curtailment rate resulted. Since 2018, the Chinese government has resorted to curtailment caps and renewable portfolio standards to increase the utilization of renewable electricity. After the announcement of the "dual carbon goals" in 2020, the Chinese government launched a series of reforms that aimed to nurture growth in the green electricity market and the formation of a nationally integrated electricity market. The removal of interregional trade barriers is a key element of China's current electricity market reforms and will be crucial to determining whether China can achieve its climate goals. [ABSTRACT FROM AUTHOR]