2006•Unpublished venueRequires access
The impact of generating cost on electricity price in electric power market
Hao Zhou, Xianghong Xiong, Fuqiang Zhang
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Abstract
Based on Zhejiang electric power market, the relationship between system surplus capacity percent (SCP) and average electricity price, together with the rate of capital return, is utilized to the calculation of total average electricity price. A model between generating cost and electricity price is proposed. Through some numerical examples, it is concluded that when generating cost increases in a certain rate, the change of price cap determines the change of electricity price and the percentage electric power plants are to assume of the growth in generating cost. (6 pages)