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

Yuanyuan Zhang, Huiru Zhao and Bingkang Li

Energy, 2022, vol. 248, issue C

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.

Keywords: Generation capacity adequacy; Adequacy guarantee mechanism; Adequacy evaluation method; Capacity price (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544222005618
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:248:y:2022:i:c:s0360544222005618

DOI: 10.1016/j.energy.2022.123658

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().