Block bidding mechanism incorporating demand side participation

Abstract

With respect to characteristics of block trading rules, integrating various implementation mechanisms of demand side bidding (DSB), block bidding mechanism is extended to demand side and theory framework of block bidding mechanism incorporating demand side participation is proposed. Based on electricity pool pattern and with block bidding rules, electricity sellers and buyers can perform electricity trading in bilateral block bidding electricity markets. Furthermore, this paper analyzes implementation scheme of bilateral block bidding in detail, including block classification method, bidding rules and market clearing algorithm etc. The framework is beneficial to effective demand side participation in electricity markets, strengthens the relation between electricity supply and demand, and enhances energy trades efficiency.