Research on Capacity Compensation Mechanism Based on Fixed Investment Cost of Power Generation Enterprises

Ran Chen () and Bingni Chen
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Ran Chen: Kunming Power Exchange Center Co. Ltd.
Bingni Chen: Insigma Hengtian Software Ltd.

A chapter in Proceedings of the 2022 3rd International Conference on Big Data Economy and Information Management (BDEIM 2022), 2023, pp 710-716 from Springer

Abstract: Abstract With the increase of the proportion of renewable energy and the promotion of spot market, the fixed cost recovery of thermal power enterprises faces greater difficulties and the willingness to invest in power generation decreases, which brings risks to the safe and reliable operation of the power grid and the healthy and orderly development of the market. This paper proposes a capacity compensation method based on the fixed investment cost of power station, which can provide a simple and easy-to-operate compensation scheme for the fixed investment cost recovery of power generation enterprises. Since the revenue already earned by power enterprises is deducted from the capacity compensation cost, it can effectively avoid the problem of over-compensation to power generation enterprises and realize the linkage between capacity compensation revenue and real-time market revenue.

Keywords: capacity compensation; fixed investment cost; power station (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-124-1_81

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DOI: 10.2991/978-94-6463-124-1_81

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