A Mechanism Framework for Clearing Prices in Electricity Market Based on Trusted Capacity of Power Generation Resources

Yuanyuan Lou, Jiekang Wu (), Zhen Lei (), Xinmiao Liu, Junlei Liu and Xun Lu
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Yuanyuan Lou: Guangdong Power Grid Co., Ltd., Guangzhou 510600, China
Jiekang Wu: School of Automation, Guangdong University of Technology, Guangzhou 510006, China
Zhen Lei: School of Automation, Guangdong University of Technology, Guangzhou 510006, China
Xinmiao Liu: Guangdong Power Grid Co., Ltd., Guangzhou 510600, China
Junlei Liu: Guangdong Power Grid Co., Ltd., Guangzhou 510600, China
Xun Lu: Guangdong Power Grid Co., Ltd., Guangzhou 510600, China

Energies, 2025, vol. 18, issue 2, 1-25

Abstract: A reasonable capacity market mechanism is conducive to exploring the capacity value of different power generation resources and ensuring the adequacy of power supply capacity in power systems. In response to the challenges faced by the existing capacity market mechanism under the background of energy transformation, such as the unreasonable quantification of the support effect of different power generation resources on the power capacity of power system and the imperfect pricing mechanism of power capacity, a capacity market mechanism for power systems with high proportion renewable energy has been designed. To quickly clarify the capacity support effect of different power generation resources, a capacity credibility factor is introduced to quantify the actual contribution of different power generation resources in capacity supply and to deeply explore the capacity value of power generation resources. Based on the uniform marginal clearing price in the capacity market, the marginal clearing price of different power generation resources is corrected by using the cost ratio factor, which includes the difference in the cost structure of power generation resources. By comparing and analyzing examples, the proposed cost ratio factor can effectively optimize the capacity price; the maximum price difference is 18.2 yuan/MW, the overall capacity cost of the system is reduced by 53.70%, and the effective connection between fixed cost and variable cost of power generation resources is realized.

Keywords: capacity market; energy structure; renewable energy; marginal clearance; capacity credible factor; cost proportion factor (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: 2025
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