Benefit Allocation Mechanism Design of Electricity Markets with Penetration of High Proportion of Renewable Energy

Vigorously developing renewable energy and building a clean and efficient energy system have become inevitable choices for implementing the energy revolution. In the electricity market environment, as the penetration of renewable energy keeps increasing, the share of traditional thermal power is constantly occupied. Since a reasonable market mechanism has not been established to guarantee the basic benefits of thermal power supply capacity, thermal power enterprises lack the incentive to provide auxiliary services for high proportion of renewable energy. The core idea of market value distribution lies in quantifying the contribution and value of market members and distributing benefits according to "Who creates the value who shares, who produces the cost who bears". Therefore, a benefit allocation mechanism of electricity markets with penetration of high proportion of renewable energy is proposed. Based on the Vickrey-Clarke-Groves (VCG) mechanism, the value of a thermal power unit is defined as the substitution benefit of the unit to other power generation resources, and the true cost of thermal power for renewable energy grid-connected accommodation is accurately identified, thereby stimulating thermal power units to make truthful bids and actively reserve auxiliary capacity, forming a pattern of mutual benefit for electricity markets with high proportion of renewable energy. © 2022 Automation of Electric Power Systems Press.