Research on the Construction Method of Inter-Provincial Spot Trading Network Model Considering Power Grid Congestion

Hui Cui (), Guodong Huang, Jingyang Zhou, Chenxu Hu, Shuyan Zhang, Shaochong Zhang () and Bo Zhou
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Hui Cui: China Electric Power Research Institute, Haidian, Beijing 100192, China
Guodong Huang: China Electric Power Research Institute, Haidian, Beijing 100192, China
Jingyang Zhou: China Electric Power Research Institute, Haidian, Beijing 100192, China
Chenxu Hu: China Electric Power Research Institute, Haidian, Beijing 100192, China
Shuyan Zhang: China Electric Power Research Institute, Haidian, Beijing 100192, China
Shaochong Zhang: State Grid Tangshan Power Supply Company, Tangshan 063000, China
Bo Zhou: School of Electrical Engineering, Shanghai University of Electric Power, Pudong, Shanghai 201306, China

Energies, 2025, vol. 18, issue 7, 1-26

Abstract: This study proposes a full-cost electricity pricing model (M3) based on power flow tracing, addressing limitations in traditional nodal pricing and postage stamp methods. M3 dynamically allocates fixed transmission costs based on actual grid utilization, improving fairness, price signal accuracy, and congestion management. The model achieves fast convergence within 20 iterations across tested networks. Sensitivity analysis confirms that fuel costs and load variations significantly impact pricing, making M3 more adaptive and responsive. A regression-based forecasting model further enhances price predictability. The dual IEEE 118-bus case study validates M3’s feasibility in inter-provincial electricity markets, demonstrating its effectiveness for real-time pricing and investment planning.

Keywords: power flow tracing technology; inter-provincial electricity trading; power grid congestion; transmission cost allocation; security-constrained economic dispatch; demand response (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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