The impact of retailing side market liberalization on future electric grid operation

China has commenced an electricity restructuring reform in 2014, with the announced aim of applying market competition to the power retailing sector. Although power system security and competitive market operation are contradictory, they could co-exist in harmony. This paper aims to find out an equilibrium mode between retail side commercial competition and reliable system operations. The equilibrium model is simulated by a single substation which represents the load of a large industrial consumer. First, time-dependent energy price strategies are reviewed and proposed by analyzing consumption patterns from Y area where 95% of local load comes from industrial customers in Northeast China. Second, the peak-valley load gap is curtailed, considering economically viable if proper wholesale market tariff is allowed. Third, power system dispatch procedures are re-scheduled for eliminating transmission line congestion with respect to predefined set of contingencies. Security check is made to see whether power flow oversteps equipment´ s thermal limits in a double-circuit transmission line failure scenario. Finally, system transient stability characteristics are simulated when proposed tariff plans are applied.