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Medium and long-term electricity market trading strategy considering renewable portfolio standard in the transitional period of electricity market reform in Jiangsu, China

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  • Li, Tianyu
  • Gao, Ciwei
  • Chen, Tao
  • Jiang, Yu
  • Feng, Yingchun

Abstract

The Energy Consumption Guarantee Mechanism (ECGM) of renewable energy requires the prior consumption ratio of renewable energy, and regulates the proportion of renewable energy power in each province. The implementation of Renewable Portfolio Standard (RPS) will have a great impact on the energy portfolio management and trading strategy of electricity in the medium and long-term electricity market. Grid companies (or power exchange center), as the organizers of the medium and long-term market and the primary entities responsible for renewable energy consumption, need a set of scientific trading strategies for the overall scheduling of inter- and intra-provincial power exchange arrangements. Firstly, based on the medium and long-term power market trading rules of Jiangsu, China, this paper analyzes the risk of uncertainty in the power output of renewable energy, and introduces the optimization model into the cost of risk to schedule the consumption ratio of renewable energy in the province, namely arranging the amount of renewable and non-renewable energy electricity as well as that of electricity outside the province. Secondly, the risk levels and their response are determined, and the electricity arrangements inside and outside the province in the medium and long-term market are updated based on a time window rolling method and the proposed mechanism. Finally, illustrative cases are performed to verify the effectiveness of the model and to provide a reference for the organizers' decision-making of medium and long-term power exchange.

Suggested Citation

  • Li, Tianyu & Gao, Ciwei & Chen, Tao & Jiang, Yu & Feng, Yingchun, 2022. "Medium and long-term electricity market trading strategy considering renewable portfolio standard in the transitional period of electricity market reform in Jiangsu, China," Energy Economics, Elsevier, vol. 107(C).
    • Handle: RePEc:eee:eneeco:v:107:y:2022:i:c:s0140988322000445
    DOI: 10.1016/j.eneco.2022.105860
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