Analysis on the economical effectiveness of regional electricity market

Market efficiency is a key factor in evaluating the operating state of regional electricity market (REM). This paper analyzes and appraises the economical effectiveness of REM from the perspective of the short-term market efficiency and long-term market efficiency. The short-term market efficiency indicates the degree of the effectiveness of market operation considering the behavior of the main body of the market and transmission congestion in the certain market environment. The long-term market efficiency indicates the energy effect, economic effect, social effect and environmental effect which electric power planning and electricity consumption bring to the regions concerned. With the changes of system environment, REM, which has operated effectively in short time, cannot ensure that it will get a long-term validity, and vice versa. This paper analyzes the internal relationships between short-term and long-term market efficiency and puts forward the methods to estimate the economic effectiveness of REM through building coordinative region that meets the short-term efficiency and long-term efficiency simultaneously.