Research on double-tier bidding model for gas-fired units

Abstract

This paper proposes a double-tier bidding(DTB) model on the generation side to introduce gas-fired units(GFU) into the market bidding by analyzing the electricity cost of the whole society and the generation cost of gas-fired units. With the introduction of a sub-process, the GFUs are incorporated into the main bidding process or the sub-process independently, and the bidding prices of each process are cleared separately. Based on the traditional market bidding algorithm, the DTB model can effectively solve the problem of increasing market price after units with higher generation costs join the market. Besides, transmission congestion and power shortages during peak hours caused by the drawback of market mechanism can be avoided. In addition, recessive electricity price subsidy from markets is visualized, realizing the non-price advantages of low-emission units. Thus, the promotion of the overall optimal social benefits and the implementation of the low-carbon development concept are realized. Moreover, the algorithm incorporates a transverse comparison method of generation costs to restrict the market speculation of power suppliers. Numerical example shows that this algorithm is effective and feasible, and can be adopted in other areas with similar market characteristics.

Keywords

• Electricity market
• Gas-fired unit
• Double-tier bidding
• Power transmission congestion