Research on the Service Evaluation System Adapted to Provincial

Medium and Long-Term Power Trading

Xiqing He

, Hande Qi

1,*

, Juan Li

, Zheng Fu

, Tian Xia

, Xianwei Zhang

, Jin Yang

and Rong Lu

GanSu Power Exchange Center, Lanzhou City, Gansu Province, China

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

 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

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

y Settlement

cle

Combination of

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

regulation will participate in the market bidding after deducting the preferential powe

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

long term market; The sum of the market shares of the four largest power generatio

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

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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