A Modeling Method Based on Multi-Product Electricity Market Clearing and Settlement Mechanism

Abstract

This invention discloses a modeling method based on a multi-product electricity market clearing and settlement mechanism. The method includes identifying key concepts in the electricity market, including homogeneous products, heterogeneous products, product groups, and product conversion; determining data based on a bidding function; determining data based on a true function; constructing a general model for centralized bidding market bidding and settlement; and constructing a general model for bidding market clearing. The mathematical model established by this invention can better express the relationships between various factors in the electricity market.

Description

Technical Field

[0001] This invention relates to the electricity market, and in particular to a modeling method based on a multi-product electricity market clearing and settlement mechanism. Background Technology

[0002] To learn from the development experience of advanced electricity markets and provide insights and suggestions for electricity market construction, many scholars have conducted review studies on domestic and international electricity markets from various perspectives. Current literature either lacks mathematical modeling or in-depth analysis of the various factors in clearing or settlement models, failing to yield fundamental research conclusions. Therefore, it is necessary to design a general formula modeling method for clearing and settlement mechanisms in multi-product electricity markets. This method should intuitively reveal the commonalities of various mechanisms in terms of influencing factors, explaining why some seemingly disparate mechanisms can achieve near-minimized cost results. Furthermore, the general formula should help uncover the causes and consequences of common fallacies in existing research and provide a universal tool for future product design. Summary of the Invention

[0003] In order to overcome the above-mentioned shortcomings and deficiencies of the prior art, the purpose of this invention is to provide a modeling method based on the clearing and settlement mechanism of the multi-product electricity market.

[0004] The objective of this invention is achieved through the following technical solution:

[0005] A modeling method based on multi-product electricity market clearing and settlement mechanisms, including

[0006] Identify key concepts in the electricity market, including homogeneous products, heterogeneous products, product groups, and product conversion.

[0007] Determine the data based on the quotation function;

[0008] Determine the data based on the true function;

[0009] Construct a general model for centralized bidding market quotation and settlement;

[0010] Construct a general model for market clearing through competitive bidding.

[0011] Furthermore, the homogeneous products are those that can be substituted for each other in multi-product transactions, while the products that cannot be substituted for each other are heterogeneous products.

[0012] The product group refers to a group of multiple products with common costs, which are further divided into homogeneous product groups and heterogeneous product groups based on whether the products are substitutable for each other.

[0013] Product conversion refers to the mutual conversion of products within a heterogeneous product group; the facility that enables this conversion is called a conversion facility.

[0014] Furthermore, the data based on the quotation function includes:

[0015] The cost or benefit calculated according to the supplier's or consumer's pricing function is the pricing cost and pricing benefit;

[0016] The difference between the total price benefit of all consumers and the total price cost of all suppliers in the market is the market surplus.

[0017] The market benefit is the profit of market participants calculated based on the clearing price and the quoted price.

[0018] The difference between total market revenue and total market expenditure, calculated from the perspective of the market operator based on market clearing results and settlement rules, is called the settlement surplus.

[0019] Furthermore, the data based on the real function includes:

[0020] The costs or benefits calculated based on the supplier's or consumer's real cost or benefit function are the real costs and real benefits, where the costs do not include any opportunity costs.

[0021] The profits of market participants calculated using the true function are the true profits.

[0022] Total social welfare is the difference between the total real benefit of all consumers and the total real cost of all suppliers.

[0023] Furthermore, the construction of a general model for centralized bidding market quotations and settlement specifically includes:

[0024] Function and variable naming rules;

[0025] Product quantity representation format;

[0026] A general function representation for pricing, cost, benefits, and settlement;

[0027] Benefits and surplus are expressed in the same way.

[0028] Furthermore, the proposed general clearing model treats market clearing as an optimization problem.

[0029] Furthermore, the construction of the general clearing model specifically involves:

[0030] The decision variable is a three-dimensional vector q. s and q d When all products in the market are homogeneous or all products adopt a single-end pricing, the dimension of the decision variable is reduced by one dimension accordingly.

[0031] The market clearing objective function is to maximize market surplus, expressed as follows:

[0032] max R co (qs ,q d ) = max(R do (q d )-R so (q s )).

[0033] Furthermore, when the user-side bidding function represents a fixed demand quantity, independent of market price, the consumer's total bidding benefit is constant. The market clearing objective function simplifies to minimizing the total bidding cost for all suppliers, as follows:

[0034] minR so (q s ).

[0035] Furthermore, the constraints on electricity market clearing are divided into three categories: individual constraints on market participants, public constraints on the market, and constraints on market supply and demand balance. Among them, individual constraints on market participants are further divided into supplier constraints and consumer constraints.

[0036] Furthermore, if there are product conversion facilities in the electricity market, the supply and demand of each type of product in the market may not be equal. Therefore, the market supply and demand balance constraint needs to be rewritten, introducing a "conversion entity," represented by the number "0." This constraint is expressed as follows:

[0037]

[0038] in, This represents the conversion amount between two products related to the conversion entity; positive values ​​indicate transfers out, and negative values ​​indicate transfers in. Losses incurred during product conversion.

[0039] Compared with the prior art, the present invention has the following advantages and beneficial effects:

[0040] This invention clarifies the concepts of product groups, product conversion, conversion facilities, market benefits, and social welfare in the electricity market. It defines data based on bidding functions and data based on real functions to illustrate the more specific properties of the data. It proposes general formulas for expressing the trading volume of eight products and general functional expressions describing bidding, costs, and revenues, as well as a series of expressions for market surplus, objective functions, and clearing constraints derived from these. It can provide mathematical models for various bidding and settlement mechanisms to compare their differences and commonalities. The proposed concepts and general modeling can serve as a reference for future research, enabling a better understanding and expression of electricity market issues, making market mechanism research more standardized, facilitating comparison and reference between different studies, and promoting the development of the discipline. Detailed Implementation

[0041] The present invention will be further described in detail below with reference to the embodiments, but the implementation of the present invention is not limited thereto.

[0042] Example

[0043] A modeling method based on a multi-product electricity market clearing and settlement mechanism includes the following:

[0044] Identify key concepts in the electricity market, including homogeneous products, heterogeneous products, product groups, and product conversion.

[0045] Specifically:

[0046] In multi-product transactions, products that can be substituted for each other are defined as homogeneous products, while products that cannot be substituted for each other are defined as heterogeneous products.

[0047] Multiple products with common costs can be grouped into a product group, which can be further divided into homogeneous product groups and heterogeneous product groups based on the differences between the products.

[0048] Product conversion refers to the conversion between products within a heterogeneous product group, and the facilities that enable this conversion are called conversion facilities. In the electricity market, conversion facilities include commercial facilities that participate in market bidding, as well as public facilities that do not participate in bidding; both have the same physical effect.

[0049] Determine the data based on the quotation function;

[0050] Considering the existence of market forces, market participants will always engage in strategic pricing to increase profits to some extent, and will not price according to the true cost. When studying market efficiency and social welfare, it is necessary to introduce data based on pricing functions and data based on true functions.

[0051] Data based on the quotation function:

[0052] The cost or benefit calculated using the supplier's or consumer's pricing function is the pricing cost and pricing benefit.

[0053] The difference between the total price benefit of all consumers and the total price cost of all suppliers in the market is the market surplus.

[0054] The market benefit is the profit of market participants calculated based on the clearing price and the quoted price.

[0055] The difference between total market revenue and total market expenditure, calculated from the perspective of the market operator based on market clearing results and settlement rules, is called the settlement surplus.

[0056] Data based on the real function:

[0057] The costs or benefits calculated based on the supplier's or consumer's true cost or benefit function are the true costs and benefits. The costs do not include any opportunity costs.

[0058] The profits of market participants calculated using the true function are the true profits.

[0059] Total social welfare is the difference between the total real benefit of all consumers and the total real cost of all suppliers.

[0060] Construct a general model for centralized bidding market quotation and settlement, specifically as follows:

[0061] The naming rules for functions and variables are as follows: F represents the overall pricing function, cost / benefit function, or settlement function; f represents a sub-item within these functions; R represents market surplus, C represents market cost, and q represents the quantity of the product. The superscript indicates the specific function type: the first digit is s, d, or c, where s represents the supply side, d represents the demand side, and c represents the market trading institution or the market as a whole; the second digit is o, s, or r, where o represents costs / benefits / market surpluses related to pricing, s represents prices / settlement surpluses related to market settlement, and r represents indicators related to real costs / benefits / market welfare; if the first and second digits are not among these letters, further explanation is required; the third digit is related to a specific scenario and will be explained separately. The subscript indicates the sequence number of the market entity or product, product group, etc. The first digit represents the market entity sequence number; the second digit represents the product sequence number and the sequence number of common costs related to multiple products; the third digit is related to a specific scenario and will be explained separately. The ∑ in the superscript and subscript indicates the overall parameter. In vector variables, the subscripts of vector elements are separated by commas to indicate the ordinal numbers of variables in different dimensions; if there is a semicolon, the number before the semicolon is used to distinguish the vector name, and the number after the semicolon is used to distinguish the ordinal numbers of variables in the vector.

[0062] The usage of the product quantity expression formula is shown in the following example.

[0063]

[0064] Where, N s M, N so1 These represent the number of supply-side entities, the number of heterogeneous product types, and the number of price ranges, respectively, all taking the maximum value; q s q s,pr These represent the supply vectors of each entity on the supply side for each price range of each heterogeneous product and for each heterogeneous product. and This represents the supply quantity of supplier i for the b-th price segment of the m-th heterogeneous product. and Let i represent the price segment supply vector and the total supply of supplier i for the m-th heterogeneous product, respectively. and Let q represent the vector of the quantity supplied by supplier i for each heterogeneous product and the total quantity supplied, respectively. s This represents the total transaction volume for all products.

[0065] The general functions for pricing, cost, benefit, and settlement are illustrated below, taking the pricing function of supplier i as an example.

[0066]

[0067]

[0068] Among them, F i so Let F represent the price quotation function of supplier i. i so1 F i so2 and F i so3 These represent the single-segment cost function related only to a single product, the common cost function of a homogeneous product group, and the common cost function of a heterogeneous product group, respectively. and These are the sub-items of the corresponding cost function. and represent the number of common cost items for the homogeneous and heterogeneous product groups, respectively, with the maximum value of the relevant item counts being taken. The above describes the supply-side pricing function. The demand-side pricing function is similar; simply change the first superscript "s" to "d". The functions for real cost, real benefit, and supplier market revenue and consumer market expenditure are also similar to the supply-side and demand-side pricing functions, respectively; simply change the second superscript "o" to "r" and "s" respectively.

[0069] The formulas related to welfare and surplus are illustrated using market surplus as an example, as follows.

[0070]

[0071] R co =R do -R so

[0072] Among them, R do R so With R co These are the total cost of demand-side pricing, the total cost of supply-side pricing, and the total market surplus. and Let $\mathbf{j}$ represent the bid benefit for the $j$-th consumer and the bid cost for the $i$-th supplier, respectively.

[0073] Construct a general model for market clearing in auctions, specifically as follows:

[0074] Market clearing can be viewed as an optimization problem.

[0075] The decision variable is a three-dimensional vector q. s and q dWhen all products in the market are homogeneous or all products are priced on a single end, the number of decision variables is reduced by one dimension.

[0076] The market clearing objective function is to maximize market surplus, as shown below.

[0077] max R co (q s ,q d ) = max(R do (q d )-R so (q s ))

[0078] In some markets, the user-side bidding function is a fixed quantity demanded, independent of market price. In this case, the consumer's total bidding benefit is constant, and the market clearing objective function can be simplified to minimizing the total bidding cost of all suppliers, as follows.

[0079] minR so (q s )

[0080] Market clearing constraints can be categorized into three main types: individual market participant constraints, public market constraints, and market supply and demand balance constraints. Individual market participant constraints are further divided into supplier constraints and consumer constraints, as shown below. These constraints are represented as follows.

[0081]

[0082] in, and N sys Let b represent the individual constraints of supplier i, the individual constraints of consumer j, and the public resource constraints, respectively. These represent the lower and upper limits of various constraints, respectively, with the 'w' in the subscript representing the constraint number.

[0083] If there are product conversion facilities in the market, the supply and demand of each type of product in the market may not be equal. The market supply and demand balance constraint needs to be rewritten, and a "conversion subject" is introduced, represented by the number "0". The constraint is expressed as follows.

[0084]

[0085] in, This indicates the conversion amount of the two products related to the conversion entity; a positive value indicates a conversion out, and a negative value indicates a conversion in. Losses incurred during product conversion.

[0086] This invention targets centralized markets and abstracts the market clearing and settlement process into a general optimization model, including objective function constraints, etc. It uses a high-dimensional vector to describe multi-attribute product variables, and is applicable to clearing and settlement scenarios of different products and different clearing and settlement mechanisms.

[0087] The present invention also includes a modeling system based on a multi-product electricity market clearing and settlement mechanism, comprising a concept determination module, a data acquisition module based on a pricing function, a data acquisition module based on a real function, and a general model construction module.

[0088] The modeling method of this invention defines the concepts of declared cost and actual cost. When the entity declares according to the actual cost without making any strategy, the declared cost reflects the actual cost.

[0089] The above embodiments are preferred embodiments of the present invention, but the embodiments of the present invention are not limited to the embodiments described above. Any changes, modifications, substitutions, combinations, or simplifications made without departing from the spirit and principle of the present invention shall be considered equivalent substitutions and shall be included within the protection scope of the present invention.

Claims

1. A method for modeling a multi-product electricity market dispatch and settlement mechanism, comprising: include Identify key concepts in the electricity market, including homogeneous products, heterogeneous products, product groups, and product conversion. Determine the data based on the quotation function; Determine the data based on the true function; Construct a general model for centralized bidding market quotation and settlement; Construct a general model for market clearing through competitive bidding; The construction of a general model for centralized bidding market quotation and settlement specifically includes: Function and variable naming rules; Product quantity representation format; The formula for expressing product quantity is shown below; in, , , These represent the number of supply-side entities, the number of heterogeneous product types, and the number of price ranges, respectively, all taking the maximum value. , These represent the supply vectors of each entity on the supply side for each price range of each heterogeneous product and for each heterogeneous product. and This represents the supply quantity of supplier i for the b-th price segment of the m-th heterogeneous product. and Let i represent the price-based supply vector and the total supply of supplier i for the m-th heterogeneous product, respectively. and Let i represent the vector of the quantity supplied by supplier i for each heterogeneous product and the total quantity supplied, respectively. Total transaction volume for all products; A general function representation for pricing, cost, benefits, and settlement; The general function representation of the quotation is as follows: in, Describe the price quotation function of supplier i. , and These represent the single-segment cost function related only to a single product, the common cost function of a homogeneous product group, and the common cost function of a heterogeneous product group, respectively. , and These are the sub-items of the corresponding cost function, and the number of common cost items for the homogeneous product group and the heterogeneous product group, respectively. The maximum value of the relevant number of items is taken. The above is the supply-side pricing function. The demand-side pricing function is similar; simply change the first superscript "s" to "d". The functions for real cost, real benefit, supplier market income, and consumer market expenditure are also similar to the supply-side and demand-side pricing functions, respectively; simply change the second superscript "o" to "r" and "s" respectively. The formula for earnings is as follows: in, , and These are the total cost-benefit of demand-side pricing, the total cost-benefit of supply-side pricing, and the total market surplus. and Let $\mathbf{j}$ represent the bid benefit for the $j$-th consumer and the bid cost for the $i$-th supplier, respectively. The construction of a general model for auction market clearing treats market clearing as an optimization problem. Specifically: Decision variables are three-dimensional vectors and When all products in the market are homogeneous or all products adopt a single-end pricing, the dimension of the decision variable is reduced by one dimension accordingly. The market clearing objective function is to maximize market surplus, expressed as follows: 。 2. The modeling method according to claim 1, characterized in that, Homogeneous products are those that can be substituted for each other in multi-product transactions, while products that cannot be substituted for each other are heterogeneous products. The product group refers to multiple products with common costs grouped together, and can be further divided into homogeneous product groups and heterogeneous product groups based on whether the products are substitutable for each other. Product conversion refers to the mutual conversion of products within a heterogeneous product group; the facility that enables this conversion is called a conversion facility.

3. The modeling method according to claim 2, characterized in that, Data based on the quotation function includes: The cost or benefit calculated according to the supplier's or consumer's pricing function is the pricing cost and pricing benefit; The difference between the total price benefit of all consumers and the total price cost of all suppliers in the market is the market surplus. The market benefit is the profit of market participants calculated based on the clearing price and the quoted price. The difference between total market revenue and total market expenditure, calculated from the perspective of the market operator based on market clearing results and settlement rules, is called the settlement surplus.

4. The modeling method according to claim 1, characterized in that, When the user-side bidding function represents a fixed demand quantity, independent of market price, the consumer's total bidding benefit is constant. The market-clearing objective function simplifies to minimizing the total bidding cost for all suppliers, as follows: 。 5. The modeling method according to claim 4, characterized in that, Electricity market clearing constraints fall into three main categories: individual market participant constraints, public market constraints, and market supply and demand balance constraints. Individual market participant constraints are further divided into supplier constraints and consumer constraints.

6. The modeling method according to claim 5, characterized in that, If there are product conversion facilities in the electricity market, the supply and demand of each type of product in the market may not be equal. Therefore, the market supply and demand balance constraint needs to be rewritten, introducing a "conversion entity" with the serial number "0". This constraint is represented as follows: in, , This represents the conversion amount between two products related to the conversion entity; positive values ​​indicate transfers out, and negative values ​​indicate transfers in. Losses incurred during product conversion.

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