Research on the Service Evaluation System Adapted to Provincial
Medium and Long-Term Power Trading
Xiqing He
1
, Hande Qi
1,*
, Juan Li
1
, Zheng Fu
1
, Tian Xia
1
, Xianwei Zhang
1
, Jin Yang
1
and Rong Lu
2
1
GanSu Power Exchange Center, Lanzhou City, Gansu Province, China
2
State Grid Baiyin Power Supply Company, Lanzhou City, Gansu Province, China
Keywords: Provincial Level, Medium and Long-Term Market, Evaluation System.
Abstract:
With the deepening of power market reform, various trading subjects in the market have put forward
diversified trading demands for participation in the power market according to their own power generation
and consumption characteristics, changes in the market environment and other internal and external factors,
which has put forward higher requirements for market operation and supervision, and the original power
market evaluation system based on medium- and long-term trading is increasing lb b by unable to adapt to
the development pace of the current power market. To this end, this paper proposes a general framework for
inter-provincial and intra-provincial market monitoring and evaluation system design with general market
operation monitoring and a general index system for medium and long-term electricity market operation
monitoring including nine dimensions of market environment, market construction, market structure, market
subjects, market operation, market efficiency, market price, market settlement and grid security.
1 INTRODUCTION
Recently, the national development and reform
commission has held two meetings related to
electricity market reform, issued relevant
documents, required to promote the electricity in the
long-term contract "six sign" work, for the current
problems faced in the construction of the electricity
in the long-term market, establish and improve the
medium and long-term power contract signed
supporting security mechanisms, to further
strengthen the foundation, play the power medium
and long-term market "ballast" role. At the same
time, the state grid company held a power trading
work conference, issued relevant documents
required to improve the market adjustment
mechanism of medium and long-term contracts,
gradually shorten the trading cycle, increase the
frequency of transactions, rich trading varieties, and
gradually realize the medium and long-term trading
continuous market, so as to better play the decisive
role of the market in the allocation of resources.
With the continuous advancement of the power
market construction process, the power market also
constantly faces the test of new environment, the
traditional service evaluation system can no longer
meet the needs of the provincial power market, and
there is an urgent need to establish a transaction
service and evaluation index system that is
compatible with the medium and long-term
continuous operation.
However, the current methods and focus on the
establishment of the evaluation system in various
countries are not the same, and have not yet formed
a recognized evaluation system. Foreign electricity
market has developed earlier and established a
relatively perfect market evaluation system. Jiang
Da analyzed the evaluation methods of the
electricity market in the United States and the
United Kingdom, and proposed the principles for the
construction of the market index system; Wang Peng
introduced the meaning of each index of the
evaluation of the electricity market in the United
States, and proposed the inspiration for the
evaluation of the electricity market in China. Most
of the domestic research results focus on the
evaluation of electricity market structure, for market
structure, Mao Jibing pointed out that many foreign
electricity market regulators use Lerner index, HHI
and supply-demand ratio to evaluate the market
structure; Guo Lei proposed to use the residual
supply rate to reflect the market position,
competitive strength and the ability to influence the
570
He, X., Qi, H., Li, J., Fu, Z., Xia, T., Zhang, X., Yang, J. and Lu, R.
Research on the Service Evaluation System Adapted to Provincial Medium and Long-Term Power Trading.
DOI: 10.5220/0012037000003620
In Proceedings of the 4th International Conference on Economic Management and Model Engineering (ICEMME 2022), pages 570-574
ISBN: 978-989-758-636-1
Copyright
c
2023 by SCITEPRESS Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)
price of power generation enterprises; Qin Wang et
al. proposed the use of indicators such as upper and
lower offer limits and scarcity price frequency to
evaluate the market operation; The remaining
aspects are relatively less researched, for the whole
evaluation system, Chen Fei et al. combined with
international electricity market evaluation standards
and tried to build an evaluation system that meets
China's national conditions; Wang Gangcan et al.
took the liquidity, stability, economy and
development coordination , constructed an
evaluation index system for the electricity market
trading mechanism.
In order to promote the stable development of
medium and long-term continuous operation of
provincial electricity market and ensure the stability
of the electricity market, this paper proposes a
service evaluation system adapted to medium and
long-term electricity trading, and constructs a
general framework of market operation monitoring
with commonality for inter-provincial and
intra-provincial market monitoring and evaluation
system design as well as a general index system of
provincial medium and long-term electricity market
operation monitoring including nine dimensions of
market environment, market construction, market
structure, market subjects, market operation, market
efficiency, market price, market settlement and grid
security.
2 OVERALL PROGRESS OF
CHINA'S ELECTRICITY
MARKET CONSTRUCTION
The power market is an important part of China's
unified and open modern market system with orderly
competition. The construction of China's electricity
market continued to advance in depth and achieved
remarkable results. The industry pattern of
"controlling the middle and letting go of both ends"
has basically taken shape; The electricity market
trading system is basically established; The openness
and activity of the market increased significantly;
The decisive role of the market in allocating
resources is gradually emerging; The market
mechanism helps to continuously improve the level
of clean energy consumption; The open and
transparent market environment is healthy.
3 ELECTRICITY MARKET
OPERATION EVALUATION
SYSTEM CONSTRUCTION
IDEAS
With the rapid advancement of the trial operation of
the spot pilot continuous settlement, the power
market reform has fully entered the deep water, and
the pattern of diversified interests is more complex.
The current power market construction is at a key
node, the power market operation evaluation
analysis as an important part of the power market
construction work, need to firmly grasp the direction
and boundary of the market advancement, to
combine the new situation facing the power market,
to "ensure security supply" as the basic premise; to
"promote clean transformation " as the key goal;
adhere to the "two levels of operation" to start; in
line with the actual, according to local conditions.
4 GENERAL FRAMEWORK OF
MEDIUM AND LONG-TERM
MARKET OPERATION
EVALUATION INDEX SYSTEM
The general framework of the provincial electricity
medium and long-term market operation evaluation
index system is shown in the following table.
Table 1: Framework of evaluation index system.
Evaluation dimension
Evaluation
c
y
cle
Evaluation type
market environment annual
qualitative
evaluation
market structution monthly
quantitative
evaluation
remarket construction monthly
combination of
quantitative and
qualitative
evaluation
market subject daily
quantitative
evaluation
market operation daily
quantitative
evaluation
Market Benefits monthly
Combination of
quantitative and
qualitative
evaluation
market price daily
quantitative
evaluation
Market settlement
b
y Settlement
C
y
cle
Combination of
q
uantitative and
Research on the Service Evaluation System Adapted to Provincial Medium and Long-Term Power Trading
571
qualitative
evaluation
Grid Security daily
quantitative
evaluation
Referring to the common indicators for
monitoring and analyzing the operation of foreign
electricity markets and combining with the current
situation of the construction and operation of
medium and long-term electricity markets, the
provincial medium and long-term electricity market
operation monitoring and evaluation index system
mainly monitors and evaluates the medium and
long-term electricity market comprehensively from
the nine dimensions shown in the table above.
4.1 Market Environment
The market environment is mainly used to describe
the basic situation of the power market and the
construction environment. Generally, the provincial
medium and long-term market is monitored and
evaluated every year. Among the operation
monitoring indicators of the market environment, the
first level evaluation indicators include the basic
situation of power supply (including the total
amount, type and proportion of installed power
supply); Basic load information (including
electricity consumption, peak load, user side release,
registration of power selling companies, overall
market participation, etc.); Basic information of the
power grid (including the structure of the power grid
in the province and the main interconnection lines
outside the province).
4.2 Market Structure
The market construction dimension is mainly used to
reflect the soundness of the medium and long-term
market mechanism and the operational efficiency of
the medium and long-term market organization.
Generally, the provincial medium and long-term
market is monitored and evaluated on a monthly
basis. The operation monitoring indicators of market
construction include the first level evaluation
indicators: market rule system, market supervision
mechanism, information disclosure mechanism,
technical support system, and staffing.
Table 2: Market Structure Dimension Operational Monitoring Indicator Setup.
First level
evaluation
Secondary
evaluation index
Index content and description
Market supply
and demand
Medium and long
term market bidding
space
It refers to the power generation space in the market where the load under unifie
d
regulation will participate in the market bidding after deducting the preferential powe
r
generation and external power generation.
Medium and
long-term market
supply and demand
ratio
It refers to the ratio of generating capacity to bidding space. The statistics can be
divided into two periods: peak and trough.
Market
Concentration
HHI Index; TOP-4
share; Remaining
supply rateRSI
The sum of the market share of all power generation enterprises in the medium an
d
long term market; The sum of the market shares of the four largest power generatio
n
enterprises; It refers to the sum of market shares of other power generation enterprises
except a power generation enterprise in a certain period of time in the medium an
d
long term electricity market.
4.3 Market Construction
The market construction dimension is mainly used to
reflect the soundness of the medium - and long-term
market mechanism and the operational efficiency of
the medium - and long-term market organization.
Generally, the provincial medium - and long-term
market is monitored and evaluated on a monthly
basis. The operation monitoring indicators of market
construction include the first level evaluation
indicators: market rule system, market supervision
mechanism, information disclosure mechanism,
technical support system, and staffing.
4.4 Market Players
The dimension of market subject is mainly used to
evaluate the degree, declaration and trading behavior
of market subject's participation in the medium and
long-term market, and reflect the active degree of
medium and long-term market transactions. As
market entities participate in medium - and
ICEMME 2022 - The International Conference on Economic Management and Model Engineering
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long-term market operations every day, the
dimension of market entities should be monitored
and analyzed on a daily basis.
4.5 Market Operation
The market operation dimension is mainly used to
comprehensively reflect the overall operation of the
provincial medium and long-term market, medium
and long-term market and auxiliary service market.
Consistent with the dimensions of market entities,
the market operation dimension is generally
monitored and analyzed on a daily basis.
4.6 Market Benefits
The market efficiency dimension mainly reflects the
benefits of the market in terms of releasing the
reform dividend and promoting the consumption of
clean energy, which are reflected by indicators such
as market main body benefits, social welfare and
clean energy consumption. According to the
settlement cycle of the medium and long-term
market, the market efficiency dimension is generally
monitored and evaluated on a monthly basis.
4.7 Market Price
The market price dimension is an important
embodiment of the market operation state, and also
relates to the interests of all market subjects. The
overall price level, price fluctuation, price
reasonableness and other indicators are used to
reflect the market operation status and competition
efficiency, thus providing reference for the
improvement and optimization of medium and
long-term market rules and mechanisms. Due to the
drastic changes in market prices in the medium and
long term, the market price dimension is generally
monitored and analyzed on a daily basis, and some
key indicators need to be monitored on an hourly or
even shorter cycle.
4.8 Market Settlement
The market settlement dimension is mainly used to
evaluate the efficiency of market settlement, the
amount of settlement funds, and the scale of
unbalanced funds, reflecting the overall market cost.
The evaluation cycle of the market settlement
dimension is generally consistent with the settlement
cycle of the medium and long term market, which
can be monitored and analyzed monthly.
4.9 Grid Security
The power grid security dimension is mainly used to
reflect the power grid security operation in the
medium and long-term market environment. Power
grid security is the premise of medium and
long-term market operation, so the power grid
security dimension is generally monitored and
analyzed on a daily basis.
5 CONCLUSIONS
This paper puts forward a general market operation
monitoring framework for the design of inter
provincial and intra provincial market monitoring
and evaluation systems, including the overall index
system of Gansu electric power medium and
long-term market operation monitoring in 9
dimensions of market environment, market
construction, market structure, market subject,
market operation, market efficiency, market price,
market settlement, and power grid security The
medium and long-term market evaluation index
system in the province can be designed in detail
based on the overall framework.
ACKNOWLEDGEMENTS
On the completion of this paper, I would like to
express my heartfelt thanks and sincere respect to all
the leaders and colleagues of the Medium and Long
Term Continuous Operation Mechanism Research
Project of Gansu Power Market. Thank you for your
patient guidance and for providing me with so many
learning materials. Your help is indispensable for the
smooth completion of this article.
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