Research On China's Power Supply And Demand Side Market Design And Its Elements And Key Issues

As market reform in China has entered a crucial stage presently, the existing market structure and mode need to be adjusted or re-designed in order to deepen the reform and establish effectively competitive market mechanism. This paper takes a research on the supply-side, demand-side and the market mode which can join the two sides together, and then puts forward corresponding policy suggestion to our electricity market designing.First, through the construction of muti-unit auction model which reflects many essential factors of competitive electricity market, the uniform auction and the discriminatory auction are compared to each other in terms of average market price and productive effience. Second, a dynamic simulation model is built to solve the setting of two key parameters in supply-side market, and applies this model to various cases to analyze the generation capacity development. Third, this paper analyzes general designing issues of the introduction of demand-side response in the electricity market and its implementation mode design, and then gives corresponding recommendation. Fourth, construct a power trader behavioral analysis model to analyze the possible behavior choice of power traders in the coexistence of stock market, bilateral market and finance derivant market.The result shows that the operation effience is not only determined by the designing of auction pattern or the choice of the auction method, but also decided by the demand level which lies on the designing of other accessory architecture of the auction pattern; parameter combination of low energy price cap and high capacity price should be made, in order to curb the fluctuation of generation capacity and maintain the system reliability; the introduction of effective demand-side response mechanism can clearly define the responsibility of each market member, and guarantee the full use of market resources, then boost the sustainable development of electric industry; the introduction of financial derivant market is good to maintain the fluidity and the stability of the market with the coexistence of stock market and bilateral market.Finally, the key issues and main mechanism in the designing of a effectively competitive market are put forward, and the main challenges of building a effectively competitive market are concluded, and then this paper gives a series of policy suggestion to the designing of our electricity market.