The Study on Pricing Policies and Trading Mechanism of Distributed Generation

According to the current status of distributed generation (DG) in our country, this paper discusses issues on pricing policies and trading mechanism of interconnection in the following two fields, renewable DG and combined cooling heating & power (CCHP). For renewable energy, the paper studies the associate measures to our national renewable energy law which implemented this year, designs two reasonable cost- sharing methods: Fund And Volunteering Purchasing Mechanism. For CCHP, the paper brings the proposal of compensatory expenses to the reserve capacity of power system. Long Term Marginal Cost methodology is discussed for calculating basic price of power tariff. The paper uses the date of Beijing-grid to calculate the expenses standard under different voltage levels of interconnection. In the final, suggestions on pricing policies and trading mechanism of DG are given.