Reforming the operation mechanism of Chinese electricity system: benefits, challenges and possible solutions
Accepted version
Peer-reviewed
Repository URI
Repository DOI
Change log
Authors
Chen, Hao
Chyong, Chi Kong
Mi, Zhifu
Wei, Yi-Ming
Abstract
A new wave of electricity market reform was launched by the Chinese government in March 2015. One of the major objectives was to optimize the power system operation by reforming the low-efficient equal share dispatch mechanism. To provide decision-making support for the reform, we establish a mixed-integer linear programming optimization model to simulate the post-reform results, and the reform benefits are estimated by comparing them with the pre-reform results. Then, we develop a political economy framework to identify the challenges associated with implementation of economic dispatch. At last, we propose several regulatory and market measures to address these identified challenges.
Description
Keywords
Power system operation, Economic dispatch, China, MILP, Optimization
Journal Title
Energy Journal
Conference Name
Journal ISSN
0195-6574
1944-9089
1944-9089
Volume Title
41
Publisher
International Association for Energy Economics
Publisher DOI
Rights
All rights reserved