Electricity market price calculation model and application based on system power generation cost

Abstract

The cost of electricity is a key factor for the formation of electricity prices. In this work, we designed a cost model for calculating the electricity price that can calculate the hourly generation cost of the system, provides a potentially more reasonable explanation for the fluctuations of the electricity price. The total system generation capacity cost is shared according to the duration of the load and the load level by the peak-load responsibility method, obtained the system capacity cost per hourly kWh. Then, according to the power supply structure and the power output of each power supply in the system, calculating the marginal cost of the system per hourly kWh of electricity. Adding the system marginal cost to the system capacity cost to get the generation cost per unit of electricity. Finally, we used the actual data of Province A in Central China as a simulation example to verify the validity of the model. The model designed in this paper can provide a scientific basis for market players to make offer prices and government departments to regulate prices.