Coordination Research on Key Parameters in Generation Competition Based on Dynamic Simulation

Power generation adequacy is critical for the reliability of electricity supply service, and therefore its investment draws much attention. This paper builds a dynamic simulation model to solve the setting of two key parameters, the energy price cap and the capacity price in the generation market, and applies this model to various cases to analyze the generation capacity development. Based on the simulation results, this paper analyzes the sensitivity of generation capacity to the key parameters. Furthermore, this paper proposes an evaluation index system for the simulation model, and discusses the correlation between the two key parameters, from the views of reliability and economy. The research shows that there might be potential unmarked misunderstandings in the setting of key parameters, and suggests that under a certain electricity bill for customers, parameter combination of low energy price cap and high capacity price should be made, in order to curb the fluctuation of generation capacity and maintain the system reliability.