Bi-level Electricity Market Design with Boundary Equivalence of Interior Security Constraints

Inter-regional power exchange and market integration are important issues in both Europe and China. Due to the hierarchical operation structure, however, European experience cannot be directly applied in China. To this end, a national-provincial bi-level electricity market is proposed in this paper. The highlights are: 1) The framework and the coordination mechanism of the bi-level market are designed; and 2) A power transfer feasible region (PTFR) model based on the projection theory is proposed to make equivalence of intra-regional network constraints thus inter and intra-regional congestions could be managed simultaneously in national level market. Full procedure simulation based on a 4-province market with IEEE RTS-96 system in each province verifies the effectiveness of the bi-level market as well as the PTFR model.