Decomposition Method of Government Authorized Contracts Considering Unbalanced Funds

The government authorized contract is deemed to be an important measure for ensuring the smooth transition and stable operation of the emerging electricity markets in China. In the current electricity markets in China, only part of the overall power demand is traded in the electricity spot market, and the proportion of the marketized electricity amount on both sides of generation and consumption is not equal, so the decomposition of government authorized contracts may directly affect the distribution of interests among market participants as well as the amount of unbalanced funds generated during market operation. Considering the unbalanced funds generated during the transition to spot electricity market operation, this paper proposes a decomposition method for government authorized contracts. First, the causes and countermeasures of unbalanced funds are analyzed. After that, the fairness coefficient is introduced to measure the fairness among the same type of generators regarding contract decomposition, and a contract decomposition model is established with the objectives of minimizing unbalanced funds and maximizing fairness. Finally, using trial operation data of electricity markets in China, the contracts are decomposed under a variety of boundary conditions, and the results are compared with some existing decomposition models so as to demonstrate the feasibility and effectiveness of the proposed model.