The Impact of Participation Ratio and Bidding Strategies on New Energy’s Involvement in Electricity Spot Market Trading under Marketization Trends—An Empirical Analysis Based on Henan Province, China

Liqing Zhang, Chunzheng Tian, Zhiheng Li, Shuo Yin, Anbang Xie, Peng Wang and Yihong Ding ()
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Liqing Zhang: State Grid Henan Electric Power Company, Zhengzhou 450003, China
Chunzheng Tian: Economics and Technology Research Institute of State Grid Henan Electric Power Company, Zhengzhou 450052, China
Zhiheng Li: Henan Power Exchange Center, Zhengzhou 450003, China
Shuo Yin: Economics and Technology Research Institute of State Grid Henan Electric Power Company, Zhengzhou 450052, China
Anbang Xie: Economics and Technology Research Institute of State Grid Henan Electric Power Company, Zhengzhou 450052, China
Peng Wang: National Institute of Energy Development Strategy, North China Electric Power University, Beijing 102206, China
Yihong Ding: National Institute of Energy Development Strategy, North China Electric Power University, Beijing 102206, China

Energies, 2024, vol. 17, issue 17, 1-17

Abstract: As new-energy electricity increasingly enters the post-subsidy era, traditional fixed feed-in tariffs and guaranteed purchase policies are not conducive to the optimal allocation of large-scale, high-proportion new-energy power due to the high pressure of subsidy funds and the fairness issues of power-generation grid connection. Encouraging new energy to participate in electricity market transactions is considered an effective solution. However, existing studies have presupposed the adverse effects of new energy in proposing market mechanism optimization designs for new-energy participation without quantitative results to support this, which is not conducive to a true assessment of the comprehensive impact of individual instances of new-energy participation in the market. To this end, this study, based on the actual experience and data cases of China’s electricity spot market pilot provinces, considers both unit commitment and economic dispatch in the electricity distribution process, and constructs a two-stage optimization model for electricity spot market clearing. According to the differences in grid connection time and the construction costs of new-energy power, differentiated proportions of new-energy participation in the market and bidding strategies are set. By analyzing the quantitative results of new energy participating in spot market transactions under multiple scenarios, using both typical daily data for normal loads and peak loads, the study provides theoretical support and a data basis for the optimized design of market mechanisms. The research results show that there is a non-linear relationship between the scale of new energy entering the market and its bidding strategies and market-clearing electricity prices. In the transition phase of the low-carbon transformation of the power sector, the impacts of thermal power technology with a certain generation capacity and changes in the relationship between power supply and demand on electricity prices are significant. From the perspective of the individual interests of new-energy providers, the analysis of their bidding strategies in the market is important.

Keywords: low-carbon transformation; participation of new energy in the electricity market; clearing of the spot market; design of electricity market mechanisms (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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