The Design of Reserve Market Basing on Reserve Responsibilities Bilateral Contracts

Two kinds of reserve market model are introduced in this paper, which are PoolCo model and bilateral contracts model. The advantages and shortfalls of these kinds of reserve market are introduced and compared. In order to realize the transition from the traditional industry structure to the competitive electricity market smoothly, the project of reserve market basing on reserve responsibilities bilateral contracts for China is designed at length. At first, the fundamentals of assigning the reserve responsibilities are brought forward. Then, the measures of assigning the reserve responsibilities between the generators are designed, which are the Direct Assigning Measure and the Actual Value Convert Assigning Measure, at the same time the measures of assigning the reserve responsibilities between the suppliers and big Customers are designed. At last, the principles and measures to dispatch the generators when the reserves are needed by the power system are designed, which are Simple dispatching Measure and Improved dispatching Measure. The design is simple and easy to be applied at the beginning of Chinese electricity industry reform.