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Research on the design and influence of unit generation capacity adequacy guarantee mechanism in the power market

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  • Zhang, Yuanyuan
  • Zhao, Huiru
  • Li, Bingkang

Abstract

With the advancement of power system reform and the improvement of renewable energy penetration, the situation of power generation enterprises and the generation capacity adequacy of power system are facing challenges. It is urgent to ensure reliable power supply in the market through new evaluation methods and guarantee mechanisms. Firstly, this paper proposes an evaluation method of generation capacity adequacy for multi-types units, which quantitatively calculates the adequacy capacity of each unit and the generation capacity adequacy of the system. Secondly, this paper designs a unit capacity compensation mechanism adapted to the initial stage of Power Market construction, which includes capacity pricing model, compensation capacity quota model, capacity fee settlement model. Among them, the capacity pricing model considers the investment cost of marginal units operating during annual peak load, while the compensation capacity quota model considers the actual generation capacity of units and the actual demand of the system. Finally, this paper takes a certain region of China as an example to verify the effectiveness and adaptability of the mechanism. The results show that the capacity adequacy guarantee mechanism designed in this paper can effectively reflect the overall level of power system generation capacity adequacy, fairly distinguish the reliability value of various generation units, help power generation enterprises recover fixed costs within the planned investment payback period and ensure the system generation capacity adequacy.

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  • Zhang, Yuanyuan & Zhao, Huiru & Li, Bingkang, 2022. "Research on the design and influence of unit generation capacity adequacy guarantee mechanism in the power market," Energy, Elsevier, vol. 248(C).
    • Handle: RePEc:eee:energy:v:248:y:2022:i:c:s0360544222005618
    DOI: 10.1016/j.energy.2022.123658
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