In the dynamic world of energy markets, the efficient and cost-effective transmission of power across provincial borders is a critical challenge. A groundbreaking study led by GU Huijie from the Power Dispatch and Control Center, China Southern Power Grid Co., Ltd., along with collaborators from Beijing TsIntergy Technology Co., Ltd., and other regional power grid companies, has shed new light on this complex issue. Their research, published in ‘Shanghai Jiaotong Daxue xuebao’ (Journal of Shanghai Jiaotong University), introduces a novel approach to optimizing inter-provincial power trading and transmission costs, with significant implications for the energy sector.
The traditional method of calculating inter-provincial transmission power costs—multiplying the transmission price by the power transmitted—has long been recognized as inadequate. This approach fails to account for the variability in transmission prices across different channels and times. “The existing methods do not effectively capture the nuances of inter-provincial power transactions,” explains GU Huijie. “This can lead to inefficiencies and higher costs, which are ultimately passed on to consumers.”
The research team’s innovative solution involves a comprehensive optimization mechanism that addresses network loss handling, transmission cost processing, tie-line channel flow matching, and point-to-network power trading alignment. By integrating these factors into a standardized regional power spot clearing model, the team has developed a more accurate and efficient pricing model. This model not only optimizes resource allocation but also incentivizes market participants to bid more reasonably, fostering a more competitive and transparent market.
One of the key contributions of this research is the derivation of the mathematical relationship between the system marginal prices of different provincial power grids. This breakthrough allows for a more precise understanding of how power prices fluctuate across regions, enabling better planning and more efficient use of resources. “Our model provides a clearer picture of the cost dynamics involved in inter-provincial power trading,” says DONG Cheng, a co-author from Beijing TsIntergy Technology Co., Ltd. “This can lead to significant cost savings and improved market efficiency.”
The implications of this research are far-reaching. For energy providers, the ability to accurately predict and manage transmission costs can lead to more competitive pricing and improved profitability. For consumers, it means more stable and potentially lower energy prices. Moreover, the optimized resource allocation can contribute to a more sustainable energy landscape, reducing waste and promoting the use of renewable energy sources.
As the energy sector continues to evolve, driven by technological advancements and increasing demand, the need for efficient and cost-effective power transmission becomes ever more pressing. This research by GU Huijie and his team represents a significant step forward in addressing these challenges. By providing a more accurate and efficient model for inter-provincial power trading, the study paves the way for a more dynamic and responsive energy market. As the energy sector looks to the future, the insights gained from this research will undoubtedly shape the development of new technologies and practices, driving innovation and sustainability in the field.
