Studies On The Mechanism Of Bilateral Contracts In Electricity Markets

Direct purchasing of power energy between large consumers and generation companies is a new pattern of electricity energy trading which aims to break the monopolistic position that the power grid company had owned, introduce a competitive mechanism at the customer side, consummate the mechanism and reveal the price signals for resource placements. Since Guangdong Province has taken the lead role in developing the"point to side"mode of direct purchasing for large consumers since 2006, it underwent more than two-year of movement and has gained some successful experience. Along with the electric power supply and demand of Guangdong Province turning to surplus in 2009, the electricity market reform's external power supply and demand environment has tended to be mature. Therefore, it is feasible and necessary to develop and push the direct power purchasing for large consumers.To begin with, the anthor explores the theory of the direct power purchase for the large users on the base of relative theory of this direct power purchase pattern in foreign countries. Furthermore, according to the operation status on the direct power purchase for the large users in our country at present, the existing problems of domestic direct electric power purchase by large consumers is explored. A systematical analysis of these impacts is made, and some important problems to be studied are addressed.With the methodological framework of the well-developed Cournot non-cooperative gaming model, for the situation with the direct power purchase as well as contracts the Cournot equilibrium states are investigated for an oligopoly electricity market under complete and incomplete information. A numerical example with six power companies is employed to demonstrate the features of the developed model as well as to analyze the impacts of the direct power purchase and contracts on the oligopoly electricity market equilibriums.The transmission models, transaction patterns and methods of transmission and distribution pricing of direct purchase of electricity in Guangdong are researched. A new method to pricing power transmission and distribution is proposed. Based on the method of postage stamp a transfer model of two-part transmission is set up. Results of calculation examples show that the proposed method can reflect the transmission and distribution cost and the demand of consumer more properly, so it is in favor of capital recovery of power transmission and distribution network and the reconstruction of power network.Finally, based on the direct-purchase analysis of the major domestic and foreign pilot's experience and combined with the implementation measures of domestic pilot as well as the relevant policies promulgated by government,"Interim measures for direct purchase of electricity trading of Guangdong Province"is put forward. The research and its conlusions in this paper on direct power-purchase for lager user will provide a beneficial reference to developing and extensive application of the direct power-purchase pattern for large user in China.