Progress and Key Issues for Construction of Electricity Spot Market

Abstract

The spot market is the key point in the electricity market. By generating time-varying and regional price signals, the spot market can promote resource allocation to a better level and form executable plans for dispatch. The development of the electricity spot markets in Europe, USA and China is discussed. Four key and common issues for construction of electricity spot markets are outlined, including regional market integration, capacity adequacy mechanism, market participation of new players, market operation improvement. Furthermore, future development trends of electricity market in China are prospected, in terms of institutional mechanisms, market systems, spot market expansion, spot market price formation, spot market participants, spot market clearing models and ancillary service mechanisms.