The review of Chinese generating market competition

Following the worldwide trend of power industry deregulation, China has begun its competition in generation market since 1998. It is not a simple matter to establish the operational mode of the Chinese generating market, since there are some special problems to be faced. This paper introduces some differences comparing the generating market of China with that of other countries. This paper also describes the structure, the mode and the competing rules of the Chinese generating market, the structure of the trading system, the mathematical model of power purchasing trading decision and its resolution methodology. Moreover, it is proposed how to form the fair and reasonable marginal purchase price. Finally, the numerical result of generating trade of Shandong utility that is the experimental unit appointed by the State Power Company is demonstrated.