Trading Mechanism for Demand-side Response Participating in Electricity Market in China

Abstract

Demand-side response resources refer to resources that can generate flexible responses based on various market trading mechanisms and price signals. At present, China's demand-side response resources are mainly called in planned methods. The market mechanism is not perfect, and the enthusiasm of demand-side response has not been fully mobilized. Based on the experience of foreign demand-side response participating in electricity market, this paper analyzes current situation of demand-side response resources in China and the problems faced by participating in market, then proposes trading mechanism for demand-side response participating in electricity market in three phases. Demand-side response can conduct short-term energy transactions with output curve in near-term, participate in spot market and auxiliary service market in medium-term, and participate in capacity market in long-term.