A study of the hierarchical structure for the power market in China

The Three Gorges Power Market (TGPM) is the first cross-region power market in China. In order to build efficient and high performance power markets in China, a significant problem is to determine the bulk power market hierarchical structure. In this paper, based on international experiences on power markets, common rules in power market design and operation, and real conditions of Chinese power industry, possible alternatives of power market hierarchical structures are outlined and studied. A two-level structure for the Chinese power markets is then proposed. They are national and regional power markets. Based on the two-level Chinese power market structure plan, the TGPM structure and its market participants are further suggested.