Trans-provincial and trans-regional transmission pricing mechanism under regional unified spot market

Transmission cost is an important part of the total cost of power end users, and its cost allocation and pricing mode will affect the behavior of market subjects including power generation and load in electricity transaction, and further affect the transaction situation, market efficiency and social welfare. Especially for trans-provincial and trans-regional power transmission projects, the unmatched transmission pricing method may affect the efficiency of large-scale resource optimal allocation and reduce the market dividend. Based on the three-node system, this paper discusses the construction of China's current regional power spot market and the pricing policy of trans-provincial and trans-regional power transmission, and analyzes the market clearing result, generation cost and transmission cost under the single-load ring network. The results show that if the trans-provincial and trans-regional transmission pricing method based on transmission volume is adopted in the trans-provincial and trans-regional energy transaction, the following problems will arise: 1) The efficiency of optimal allocation of resources and the social welfare will be reduced, the cost of power generation will be increased; 2) The establishment of the market clearing model of electricity energy with embedded transmission charges will greatly increase the optimization variables and clearing complexity.