Modeling the daily generation schedules in under-developed electricity markets with high-share renewables: A case study of yunnan in China

Abstract This paper presents a transition approach for markets with high-share renewables to connect the delivery of physical medium and long-term market contracts with daily system operation while ensuring safe and reliable grid operation given the under-developed electricity market environment in China. The proposed approach decomposes the market contracts into daily energy schedules with rolling updates of subsequent daily schedules to ensure fairness in contract delivery, then employs security-constrained economic dispatch to allocate the decomposed energy to each power plant to determine the day-ahead schedules. In the security check, a multi-section coordinating strategy is incorporated to maximize the utilization of transmission capacity and determine the optimal power flow. Results of the Yunnan case study demonstrate the feasibility and effectiveness of the proposed approach in modeling the day-ahead schedules and handling the multiple objectives and numerous constraints, and therefore provide a reference for similar hydro-dominated systems in transitioning to electricity spot markets. Finally, discussions and suggestions are proposed to promote electricity markets further.