A solution to regulating the electricity price based on Profit Space in Electricity Market

Regulation model selection is the core issue of electric market-oriented reform. Based on evaluating two typical regulation models (ROR and RPI-X), the paper proposed the PCM regulation for China electricity market. Using the PCM regulation, the paper emphasizes research on the quantitative relation between price level and uplift, and forecasts the uplift with Static Statistic Method and Random Production Simulation. Under the PCM regulation, a comprehensive regulation to power plant life cycle can be realized. As an innovative regulation model, the PCM is expected to provide a package solution to China electricity market. =Regulating average price is a key component of electricity market regulation. The paper "Transition from Price Capping to Profit Capping Based on Profit Space in Electricity Market" (shortened as "profit capping paper" in the following) proposes a new price ceiling model, and discusses its idea, structure, characteristic and feasibility. This paper writes on the topic of price level regulation, and pays more attention to regulation model design, investment regulation, price level control, uplift space evaluation, incentive comparative, etc. In short, this paper attempts to give an effective solution to regulate the electricity market in China.