Research on the Synergy of the Electricity Prices Providing Location Signals under Electricity Spot Market Environment

Abstract

Summarizing the categories of location signals provided by electricity prices and the electricity price mechanisms that can provide location signal, and analyzing the role and functions of location signal in electricity price in the power spot market. By power spot market simulation, quantitatively analyzing the synergy between the location signals provided by locational marginal price (LMP) and Point of Connection tariff transmission price in different grid structures and system congestion conditions in achieving their functions as public utility service prices. Combined with the actual situation of certain province s power grid in China, The analysis results are verified through electricity spot market simulation and transmission price calculations, putting forwarding suggestions on the choices of electricity price mechanisms under China s electricity price reform circumstance.