Research on Pricing and Clearing Mechanism of Provincial Regulation Market and Analysis of Examples

Reasonable design of pricing and clearing mechanism of regulation service has a great influence on improving regulation performance of units, improving regulation service quality, promoting the optimal allocation of regulation resources. In order to further stimulate units to improve regulation performance, gradually attract high-quality regulation resources and optimize the allocation of regulation resources, typical province in East China has designed and ran a regulation service market. This paper analyzes the pricing, clearing mechanism and settlement price of regulation market in typical province of East China. From the perspective of the cost of regulation resources, the basis of regulation mileage and capacity bid is analyzed, Based on the principle of regulation order processing, the mathematical model to evaluate and measure the regulation performance score is derived, the adjustment of regulation bid and clearing mechanism based on the regulation performance are discussed, and explains the clearing mechanism of the hour-ahead regulation market and the pricing and settlement mechanism of the real-time FM market. Through the optimization algorithm, the opportunity cost calculation formula and its simplified model is provided. Finally, the effect of the pricing mechanism in improving the regulation performance is verified through the case analysis of the typical province.