Changes in the electricity market under the participation of diverse participants and its supervision necessity analysis

With the demand for energy sustainability and the development of the low-carbon power system, distributed energy, energy storage, demand response, and other diverse market participants will participate in the electricity market, which brings new changes to the transaction organization process of the electricity market. This paper first introduces the changes in the electricity market under the participation of diverse market participants from two aspects of market transactions and market power. Diverse participants can provide a variety of auxiliary services in the electricity market while they have potential market power in the process. Secondly, the current supervision measures used in the foreign electricity market in the order of ex-ante, interim, and ex-post are reviewed and four common supervision indexes are introduced. Finally, the market power and the supervision necessity of the electricity market under the participation of energy storage are analyzed by case studies. As shown by the simulation results, energy storage with excellent regulating performance has market power in providing frequency regulation services, but the conventional supervision indexes fail to detect the market power of energy storage effectively. The purpose of this paper is to illustrate the necessity of the market supervision method for adapting to the changes under the participation of diverse participants.