Impact of coal price and hydropower output uncertainty on electricity spot market for Hubei

Abstract

Hubei is the second batch of power spot market pilot areas, and the construction of the spot market is imminent. At present, there are many difficulties and challenges in the construction of the spot market in Hubei. First, the price of thermal coal has fluctuated significantly in recent years, and many thermal generators have incurred losses due to the rising fuel prices, disrupting the stable operation of the market. Secondly, Hubei has a high installed capacity of hydropower, and there are many large-capacity hydropower generators with storage capacity. How to participate in the spot market of hydropower generators is a difficult problem that needs to be solved urgently at present. Based on the actual data of Hubei Power Grid, the electricity spot market is simulated. The market price and the profitability of various generators under different coal prices and different periods of hydropower dispatch are compared. The results show that in the spot market, the market price can correctly reflect the real price of electricity and ensure the profits of various generators. For hydropower generators, compared with the daily dispatch, the monthly dispatch of hydropower can better stimulate the storage capacity adjustment ability of hydropower and reduce the total cost of electricity consumption in the whole society.