A multi-area electric power exchange model for China

This paper develops a multi-area least cost production model. The model is used to design a high voltage electric power wholesale market for China. The multilevel network structure is reflected in the model as a two level optimization using Benders' decomposition, representing a two level power market, the local intra-province market and the interprovinces power exchange market The least cost power dispatch is based on generator bidding and users' insurance of their power consumption, while considering the local emission limits. The model is applied to the North China power System. The scenario analysis addresses the issues such as generating capacity utilization, spat pricing under this structure, and the implications for sulfur dioxide emissions in the region.