Impacts, challenges and suggestions of the electricity market for hydro-dominated power systems in China

Jian-jian Shen, Chun-tian Cheng, Ze-bin Jia, Yang Zhang, Quan Lv, Hua-xiang Cai, Bang-can Wang and Meng-fei Xie

Renewable Energy, 2022, vol. 187, issue C, 743-759

Abstract: Promoting a hydro-dominated electricity market (HEM) is greatly challenging. This study analyzes impacts and challenges of electricity market on hydro-dominated power system operations. The analysis indicates that the HEM exhibits unique difficulties including spatiotemporal hydraulic coupling of cascaded hydropower plants, runoff uncertainties, nonlinear operation constraints, coordination of multiple time scales, as well as transprovincial and transregional power transmission. Two kinds of suggestions are presented to overcome these difficulties for different market objects. The hydropower enterprises are suggested to improve generation prediction level, reconstruct market-based operation rules, implement multiscale nested operations and bidding, strengthen collaborative bidding of different stakeholders, and analyze market demands and competitors. The goal is to improve their competitiveness. The market operators should make efforts to develop accuracy and efficiency of clearing models and predetermine feasible hydropower bidding intervals to ensure power balance and prevent unreasonable spillage. Moreover, a practical and convenient electricity trading platforms is required. It is implied that there is strong necessity to explore characteristic market theories and application technologies combined with hydropower characteristics and actual dispatching needs.

Keywords: Electricity market; Hydro-dominated power system (HPS); Operational flexibility; Electricity transaction; Hydraulic connection (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:187:y:2022:i:c:p:743-759

DOI: 10.1016/j.renene.2022.01.089

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