Design trading market of generation rights

With the basis of long term contract, monthly market and day-ahead market, this paper designs three kinds of forms for generation right trade, monthly trade, daily trade and hourly trade. To avoid violent price wave, it sets the upper and lower limits for exchanging prices of generation rights for hydro, thermal plants. Then it analyzes the economic behaviors of hydro, thermal plants in the trade market. Last, taking hydro-thermal exchange as typical type of generation right trade, it further reveals the mechanism, processes and methodologies of generation rights trade. Case study and results got in this paper indicate that the generation right trade market can balance the current two factors, state energy policies and market adjusting mechanism quite well and can be practically used in the initial phase of electricity market reform of China