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Research on the Construction Method of Inter-Provincial Spot Trading Network Model Considering Power Grid Congestion

Author

Listed:
  • Hui Cui

    (China Electric Power Research Institute, Haidian, Beijing 100192, China)

  • Guodong Huang

    (China Electric Power Research Institute, Haidian, Beijing 100192, China)

  • Jingyang Zhou

    (China Electric Power Research Institute, Haidian, Beijing 100192, China)

  • Chenxu Hu

    (China Electric Power Research Institute, Haidian, Beijing 100192, China)

  • Shuyan Zhang

    (China Electric Power Research Institute, Haidian, Beijing 100192, China)

  • Shaochong Zhang

    (State Grid Tangshan Power Supply Company, Tangshan 063000, China)

  • Bo Zhou

    (School of Electrical Engineering, Shanghai University of Electric Power, Pudong, Shanghai 201306, China)

Abstract

This study proposes a full-cost electricity pricing model (M3) based on power flow tracing, addressing limitations in traditional nodal pricing and postage stamp methods. M3 dynamically allocates fixed transmission costs based on actual grid utilization, improving fairness, price signal accuracy, and congestion management. The model achieves fast convergence within 20 iterations across tested networks. Sensitivity analysis confirms that fuel costs and load variations significantly impact pricing, making M3 more adaptive and responsive. A regression-based forecasting model further enhances price predictability. The dual IEEE 118-bus case study validates M3’s feasibility in inter-provincial electricity markets, demonstrating its effectiveness for real-time pricing and investment planning.

Suggested Citation

  • Hui Cui & Guodong Huang & Jingyang Zhou & Chenxu Hu & Shuyan Zhang & Shaochong Zhang & Bo Zhou, 2025. "Research on the Construction Method of Inter-Provincial Spot Trading Network Model Considering Power Grid Congestion," Energies, MDPI, vol. 18(7), pages 1-26, March.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:7:p:1747-:d:1625028
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    References listed on IDEAS

    as
    1. Yizheng Li & Yuan Zeng & Zhidong Wang & Lang Zhao & Yao Wang, 2023. "Optimal Economic Scheduling Method for Power Systems Based on Whole-System-Cost Electricity Price," Energies, MDPI, vol. 16(24), pages 1-17, December.
    2. Buchholz, Wolfgang & Dippl, Lisa & Eichenseer, Michael, 2019. "Subsidizing renewables as part of taking leadership in international climate policy: The German case," Energy Policy, Elsevier, vol. 129(C), pages 765-773.
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