A matchmaking based day-ahead market design in China

A matchmaking based day-ahead market mechanism is proposed in this paper, in which daily residual energy quantity is the object of transaction and bidding is based on spread, i.e., the difference compared with the regulated electricity price. To accurately reflect the matchmaking rules and the exact information of the matching-pair, a novel matchmaking algorithm with differentiated weighting coefficients is presented. Then a day-ahead market matchmaking model considering DC power flow constraints is formulated to make sure that the market clearing results can meet security constraints. A case study based on the IEEE 118-bus system verifies the effectiveness and performance of the proposed mechanism. This mechanism is easy to implement, which can reduce the resistance of the reform and achieve a smooth transition of power market reform. Hopefully, the proposed mechanism can provide a reference for the establishment of day-ahead market in China.