Research on the Key Issues of Constructing Southern Regional Power Market in China

To construct a unified national power market in China, a feasible and effective method is to start with a number of inter-provincial regional power markets, and then gradually integrate these regional markets to expand the market scope. In this circumstance, the southern regional power market could be the pioneer in the process of Chinese power market construction. In this paper, a comprehensive review is first conducted for the construction achievements of the southern regional power market since the new round of Chinese power system reform in the year 2015. Then, the necessities of constructing a unified power market in the southern region of China are analyzed, and some market construction ideas are proposed. Next, several key issues of constructing southern regional power market are further addressed in detail. Finally, conclusions are obtained, and some suggestions on the market mechanism design, trading rule/policy-making and simulation-based risk analysis were proposed to further promote the construction of southern regional power market in China.