Analysis of congestion cost settlement mechanisms in electricity spot market

Abstract

Under the locational marginal price （LMP） mechanism， there are variations in the congestion cost settlement mechanisms among pilot provinces， requiring a comprehensive analysis. To address this， the paper first delves into the essence of the issue by elucidating the connotations of relevant congestion terms； subsequently， based on a unified connotation， it conducts a comparative analysis of the key similarities and differences in the congestion cost settlement mechanisms among typical spot markets in the pilot provinces. Finally， the paper analyzes issues such as user-side settlement point price calculation， charging of congestion fees for medium to long-term contracts， and the allocation of congestion surplus. In conclusion， it presents relevant recommendations.

Keywords

• electricity spot market settlement
• congestion price
• congestion costs
• congestion surplus
• user-side settlement point price