Research on the Transaction Mechanism Linking the Retail Market and Wholesale Market in the Electricity Sector

With the continuous progress of the electricity marketization process in China, the traditional electricity market has been unable to adapt to the large-scale integration of new energy into the grid and the current electricity consumption needs of users. This article addresses the problems of lack of transparency in the current retail and wholesale market prices, lack of competition, and inflexible trading mechanisms. It proposes a rolling matching trading mechanism that links the retail and wholesale markets. The rolling matching trading mechanism can enhance the linkage efficiency between the electricity retail and wholesale markets, increase price transparency, promote competition, achieve supply-demand balance, improve the efficiency and reliability of market operations. The simulation trading also validates the proposed rolling matching trading mechanism's ability to increase the linkage between the retail and wholesale markets.