Research on the capacity cost allocation and the electricity capacity price optimization method for a power system based on the BARY‐GA algorithm

Abstract

AbstractUnder the new power system, a high proportion of new energy is widely connected to the power grid, and it is necessary to increase investment in centralized and distributed energy storage, flexible resource regulation, and transmission and distribution grids, resulting in an increase in power system costs. The current electricity capacity price does not reflect the economic value of the added system adequately, and flexible capacity is needed to ensure the safety of the power grid under the new power system. In the context of the transformation of the new power system and investment function, it is increasingly difficult to recover the costs according to the traditional electricity price. It is necessary to establish a coordinated development mechanism for the electricity capacity price and the electricity price that recovers the fixed costs according to the investment function to ensure a reasonable return on investment in flexible resources and to provide effective investment signals. Therefore, this work first studied and proposed a mechanism for the formation of capacity and electricity prices based on the proportion of allowed income and fixed costs at different voltage levels and calculates the level of electricity capacity (demand) prices and electricity consumption prices. Then, using the BARY curve, genetic algorithm, and clustering of user load rates, a collaborative mechanism between the electricity capacity price and the electricity price was designed. With the goal of optimizing the electricity capacity price and considering constraints such as the flexibility and reliability of the new power system, the ratio of the capacity cost allocated to the electricity capacity price by voltage level users to the capacity cost allocated to the electricity price was calculated, and the optimal combination of electricity capacity price and electricity price for different load‐rate intervals was determined. Finally, the effectiveness of the model was verified through numerical simulations. On the basis of the investment characteristics of the new power system, suggestions for a capacity pricing mechanism under the new power system were proposed from the perspectives of transfer capacity function, transfer electricity function, grid reliability, and environmental and social benefits.