Research on Power Investment and Expansion Planning Considering Coal-fired Power Capacity and Electricity Price in Market-Driven Environment

State Grid Energy Research Institute Co., Ltd., 102209, Beijing, China

Abstract

The market-oriented environment and the shift away from the coal-fired power are inevitable trends in the future development of electric power energy. Based on this, this article establishes a dual-level model for power investment expansion planning with wind power system in an oligopoly competitive electricity market. In the upper-level model, power generation companies make investment decisions and formulate their bidding strategies in market transactions, while the lower-level model simulates the day-ahead market clearing process under the centralized bidding and trading mode. To encourage the transition from coal-fired power plants, a model for expected annual operating revenue of coal-fired power companies under a dual pricing system is proposed, and the conditional value-at-risk (CVaR) is used to measure the investment risk brought by the uncertainty of competitors in the investment planning game for power generation companies. The numerical results verify the effectiveness of the proposed model and method.