Author(s): Zeng Wei
In the electricity market, the aim of market mechanism style is to supply market participants with cheap worth signals to guide their behaviors in line with expectations. A fascinating rating mechanism ought to meet some properties. First, the worth signals ought to replicate the cost of demand and also the inadequacy of resources below this supply-demand balance state of affairs, that is usually referred to as economical allocation. Second, the rating mechanism ought to be able to give cheap edges to promote participants and encourage them to behave well, that is outlined as incentive compatibility. Third, the market revenue for market participants ought to be adequate cowl their investment price, that is understood as revenue sufficiency. The primary 2 properties will support stable market operation, whereas the third is closely associated with cheap market coming up with within the long haul. Because of the complicated operational characteristics of power systems, it's tough to at the same time satisfy the higher than smart rating properties, particularly once facing non-convexity within the market clearing method. The rating theme style faces challenges. Currently, the rating incentive property has attracted widespread attention.