Analysis of Price Spiking in Electricity Markets

With the developing of the worldwide reform of electricity market, the participants of the market have been encountering unprecedented market risk, especially huge financial risk evoked by the price fluctuations. Although nearly everybody pays attention to the phenomenon of price spiking in electricity markets, there is little clear analysis. Based on the actual historical bid data of Zhejiang electricity market, this paper defined SPCP (system price capacity percent) and analyzed the relation of system price capacity percent and electricity price. The results indicate the mechanism of price spiking in electricity markets, which will be good for participants and administrators to understand the origin and mechanism of the price spiking in electricity markets, and also will make for the development of electricity markets