This paper introduces the market structure of the Pennsylvana-New Jersey-Maryland (PJM) regional power market and the Nordic power market, focusing on the analysis of European market coupling and PJM cross-market trading process. By referring to the construction experience of the foreign regional spot market, and comprehensively considering the status of defaulting province as an entity as well as difference development between provinces in the southern region of China, three different cross-regional trading methods are proposed for the southern spot market under the “Southern Regional Power Spot Market Construction Work Plan”, and relevant recommendations are made for the standby and frequency modulation of the southern regional power market.

In recent years, along with the transformation and restructuring of the power industry, the generation side market power problem has become the focus in the process of electricity market reform in various countries. On the basis of sufficient research, this paper summarizes and comprehensively reviews the basic concept of market power, common market power monitoring indicators, market power mitigation methodologies, and introduces the implementation status of typical power markets in the United States, the United Kingdom, and Nord Pool. The purpose of this paper is to provide a research basis and referential ideas for market power monitoring and mitigation mechanisms establishment in China, further lead to effective prevention of market power, to ensure the effectiveness and fairness of market competition, to realize standardized management of market participants, and to improve the market operation efficiency.

With the gradual deepening of China's new electricity structural reform and electricity spot market demonstration pilots being launched, heated discussion are going on about the establishment of an effective market operation monitoring mechanism. As there have been already some mature examples in foreign countries, the experience of the operation monitoring mechanism design of the US and UK electricity markets are introduced in this paper. Based on their experience, a complete set of market operation monitoring mechanism is also designed in this paper combining the actual situation of Yunnan electricity spot market, which provides a reference for the design of operation monitoring mechanism in China.

In this paper, the current situation of the construction and application of electricity market simulation platforms are firstly summarized based on electricity deregulation practice in China and abroad. Secondly, the key problems in the process of constructing electricity market simulation platform are deeply analyzed, with market simulation procedure and methodology proposed. Finally, this paper proposes the detailed functional framework and corresponding implementation scheme of integrated simulation platform with market simulation engine as the core function, which can flexibly simulate various market models and trading scenarios. The paper also explains in detail the role and value of each functional module. Research in this paper may provide valuable reference for the construction of electricity market simulation platform, and provide methods and tools to promote the construction and improvement of China's electricity market.

Guangdong electricity spot market will officially run next year. As an important part of China's long-term energy development strategy, the “West-to-East power transmission” will cast a major impact on the Guangdong electricity market. Due to the network complexity of power systems, traditional economic theories cannot be well modeled for quantitative analysis. Multi-agent-based market simulation (ABMS) comprises autonomous agents and provides bottom-up modeling methods for such a complex system study and simulation. We apply ABMS to model and simulate the Guangdong electricity market, and then analyze the impact of “West-to-East” electricity power on the Guangdong market. Experiment results show that “West-to-East” power as the exogenous supply would reduce the average electricity price in Guangdong under normal system operation as well as compress the generation time of class B units.

This paper studies the technology support system scheme of the electricity spot market in the southern region. Based on principles of integration, modularization, intelligence, security, openness and adaptability, this paper presents the main structure and functions of the electricity spot market technology support system, including medium-long term contract decomposition, day-ahead market, real-time market, and ancillary services. Aiming at the key issues of system construction, this paper proposes to adopt a cloud platform architecture to achieve flexibility and high availability of the system, a spot market operational data center to realize the data panoramic modeling and data unified interaction, a complete boundary protection and defense-in-depth framework to ensure the external security protection of the system, and a unified system architecture and modular construction plan to guarantee the smooth transition of the system from regional initial state, regional two-level state, to regional uniform state.

Following the basic laws of the market economy and the objective laws of the operation of the power industry, considering the actual situation of the Guangdong power grid, the southern China (starting from Guangdong) electric spot market is designed. The electric spot market system consists of medium-term and long-term trading based on contract for Difference (CFDs) for hedging risks and centralized spot market for price discovery. Two settlement mechanism based on locational marginal price is applied. The designed spot market system changes the original medium-term and long-term trading based on physical transactions to that based on CFDs, with increased transaction types and transaction frequency, which helps to improve market liquidity. Centralized spot market, including day-ahead and real-time markets, can form a power price signal reflecting the physical operation characteristics of the power system, and promote resource allocation optimization.

With the continuous deepening of the electricity market reform, Southern China (starting from Guangdong) electricity spot market has entered the simulation operation stage, and it is urgent to conduct an in-depth analysis of the simulation operation. This paper introduces the construction and key mechanisms of the Southern China (starting from Guangdong) electricity spot market, and analyzes the causes of abnormal locational marginal price in some areas and the clearing results of the generating units in combination with the simulation operation case. The analysis results show that the locational marginal price and the start and stop of the generating units are mainly affected by the load distribution, generating units offer, grid safety constraints and the physical characteristics of the generating unit.

Allocation standard and decision method of ancillary service under the power spot market situation are the key factors to the coordination of economy and reliability of system operation. This paper analyzes the present application of power ancillary service at home and abroad and the mechanism theory of Guangdong ancillary market. Based on the facts of spot market construction in southern region of China (starting from Guangdong), the development path by stages of ancillary service market is proposed. Starting from the present management condition of ancillary service and on the premise of the system reliability, market mechanism is gradually utilized to enhance the rationality and economy of ancillary service decision, which meets the demand of coordinated operation of electricity market and ancillary market. In consideration of market allocation mechanism and compensation standard, ancillary service market construction schemes in each spot market development stages are also designed, which provides reference for ancillary service market mode and its mechanism design in southern region of China.

The power market provides the driving force and platform for the full consumption of renewable energy. Due to the uncertainty of renewable energy such as wind power, as the proportion of wind power participating in the power market increases, it will have a great impact on the electricity price of the power market and the income of traditional power producers. On the basis of the participation of wind power in the power market bidding, unit combination model of electric power spot market and safety economic dispatch model including wind power are established. Based on the actual operation data of a provincial power market, the Monte Carlo method is used to generate wind power random scenes, and the changes of nodal price under different permeability of wind power and different wind power prediction accuracy are calculated. The influencing factors of electricity price fluctuation are studied, and the impact of wind power on the income of traditional power producers is analyzed.

With the growing maturity of wind power technologies and the decrease of wind power construction costs, wind power producers, who are always price takers, gradually participate in electricity market strategically. However, wind power producers should be responsible for the loss caused by bidding deviation when they participate in electricity market due to uncertainty of wind power, which can cut down their benefits. In order to reduce the impact of bidding deviation penalty on wind power producer's profit, a wind & thermal power joint (W&T) bidding strategy is proposed, in which the deviation electricity caused by the uncertainty of wind power can be compensated by thermal power units with flexible adjustment capability. At first, a W&T bidding model considering penalties for wind power's bidding deviation, which aims to maximize bidding profit of a W&T producer in day-ahead market, is established based on supply function equilibrium approach, in which Monte-Carlo method and backward reduction are used to simulate future wind power. Then, particle swarm optimization method are used to solve the model and obtain the optimal bidding strategy. Compared with the independent bidding, a simulation example shows that W&T bidding can effectively improve the revenues of wind power producers, especially increase the incomes from day-ahead market, so that the initiative of wind power producers in day-ahead market can be greatly enhanced.

With the increasing scale of clean energy market transactions, the high cost of traditional thermal power is at a disadvantage in the electricity market dominated by clean energy. Moreover, the regulation level of hydro, wind, photovoltaic and other power and the stability of output have more and more influence on the safe operation of power grid. In the clean energy power market such as Yunnan, it is particularly important to use thermal power for backup, adjustment and other auxiliary services to guarantee power grid security. But how to compensate the benefits of thermal power enterprises, there are no effective and practical methods. Based on the transaction characteristics of Yunnan electric power market, this paper proposes a method of thermal power auxiliary service compensation in the clean energy electric power market. According to the monthly trading scale of the main market participants and the checking strategy of settlement, the total compensation amount of thermal power auxiliary services is determined. By quantifying the equivalent installed capacity of thermal power units, a compensation allocation method based on the residual equivalent capacity of thermal power units is established. Application results show that this method has obvious effect and can effectively alleviate the contradiction between the large-scale consumption of clean energy and the stable operation of power grid.