A study of market type and trading mode for the three gorges power market

Abstract

The Three Gorges Power Market (TGPM) will be the first cross-region power market, and play a very important role in guiding the restructuring efforts of the power industry in China. This paper discusses some issues concerning the structure of the TGPM such as the competition mode, the involved commodities and trading mode in this market. It is suggested that the wholesale mode should be employed and only forward and spot energy markets and a forward reserve market should be set up in the TGPM. At the initial operating stage of the TGPM, it is not necessary to set up a spot reserve market. In addition, some ancillary services such as reactive power and voltage control, load-frequency control and real-time power balance will not be provided in the TGPM. Since a multiple layer market structure is recommended for the TGPM, the relationship between TGPM and regional power markets is also clarified.

The Three Gorges Power Market (TGPM) will be the first cross--region power market. and play a very importantrole in guiding the restructuring efforts of the power industry in China. This paper discusses some issues concerning thestructure of the TGPM such as the competition mode, the involved commodities and trading mode in this market. It issuggested that the wholesale mode should be employed and only forward and spot energy markets and a forward reservemarket should be set up in the TGPM. At the initial operating stage of the TGPM, it is not necessary to set up a spot reservemarket. In addition. some ancillary services such as reactive power and voltage control, load--frequency control and real-timepower balance will not be provided in the TGPM. Since a multiple layer market structure is recommended for the TGPM. therelationship between TGPM and regional power markets is also clarified.This project is supported by National Key Basic Research Special Fund of China (No. G1998020305). the ResearchGrant Council (RGC). Hong Kong SAR Government, and the Committee of Research and Conference Grant (CRCG), theUniversity of Hong Kong.

三峽電力市場是中國第 1個跨大區的電力市場 ,它的建設有著十分重要的意義。文中探討了三峽電力市場的競爭模式 ,并對交易的商品、方式和機構進行了分析。建議三峽電力市場采用批發模式 ,且只從事期貨和現貨主電能交易及事故備用容量期貨交易。在三峽電力市場初始運行時期 ,可不設立備用容量現貨交易市場。三峽電力市場不提供輔助服務中的無功與電壓控制和負荷頻率控制 ,也不設實時電力電量平衡調節市場。由于三峽電力市場涉及分層的問題 ,因此還討論了三峽電力市場與區域電力市場間的關系。