Multi-Time Scale Trading Simulation of Source Grid Load Storage Based on Continuous Trading Mechanism for China

Area of Science:

• Power Systems Engineering
• Energy Economics
• Market Design

Background:

• Increasing new energy penetration presents challenges for grid stability and market participation.
• Uncertainty in new energy output impacts trading mechanisms and operational efficiency.
• China faces an urgent need for effective mechanisms to manage new energy trading.

Purpose of the Study:

• To propose a continuous trading mechanism for source, grid, load, and storage (SGLS) systems.
• To develop a multi-time scale trading simulation method for enhanced new energy consumption.
• To address the adverse impacts of new energy output uncertainty on market participation.

Main Methods:

• Established a continuous trading mechanism connecting mid-long term, day-ahead, and intra-day SGLS interactive trading.
• Developed a clearing model for SGLS trading based on the continuous trading mechanism.
• Implemented a multi-time scale trading simulation to derive optimal trading strategies.

Main Results:

• The proposed SGLS continuous trading mechanism reduced one-day trading costs by 4.20% compared to deviation assessment.
• The consumption rate of new energy increased by 6.53% under the new mechanism.
• Demonstrated improved flexibility in handling domestic new energy consumption and reverse peak shaving scenarios.

Conclusions:

• The integrated mid-long term-day-ahead-intra-day SGLS trading mechanism effectively reduces costs and enhances new energy consumption.
• This mechanism offers a robust solution for managing new energy trading deviations caused by source and load uncertainty.
• The approach provides a viable strategy for China's power market players to navigate new energy integration challenges.