Research On Electricity Price In Electric Power Market

The establishing of electric power markets plays an important role in the restructuring of worldwide electric power industry. Electricity price is a key factor in electric power markets, which contributes to the regulation of electricity supply and demand relation, the guidance of electricity consumption and the optimization of resource allocation. Therefore, the research on electricity price is of great significance in the healthy, steady and sustainable development of the electric power industry in China. In this paper, the research is focused on the following issues.Based on the historical data of Zhejiang electric power market, System Surplus Capacity Percent (SCP) is introduced in this paper. Firstly, a novel method of medium-term and long-term forecasting of electricity price is proposed. Applying this method, so far as the system bidding load and the available capacity in a certain period of time are obtained, the electricity price of that period of time can be forecasted.Secondly, the relation of supply and demand condition of electricity, price cap and total average generation price is analyzed, and a new model of price cap setting is proposed. Applying the model, a reasonable price cap can be set according to the function of price cap and total average generation price. This is important in the steady operation of electric power markets.Thirdly, the impacts of generating cost on generation price in electric power markets are analyzed. A model between generating cost and average generation price is proposed. It is concluded that when generating cost increases in a certain rate, the change of price cap determines the change of average generation price and the percentage generation companies are to undertake of the growth in generating cost.