Design of Capacity Compensation Mechanism to Ensure Flexibility and Resource Adequacy

The current energy-only market can only guarantee the recovery of marginal operating costs of flexible resources, especially for thermal power units, and the external costs generated by flexible resources to guarantee the consumption of variable renewable energy in the form of capacity have not been repaid. As a result of this, this paper focuses on the research of capacity compensation mechanism design to ensure flexible resource adequacy. First, we analyze the necessity of capacity compensation mechanism. When determining the capacity compensation quota, it should consider the impact of the decision-making behavior of thermal power enterprises on the capacity adequacy and flexibility of system operation. Therefore, this paper establishes a two-level decision-making model of thermal power enterprises considering the capacity compensation mechanism. The upper level determines whether the thermal power enterprises will exit the market with the goal of maximizing the expected income of thermal power enterprises, and the lower level is the market clearing model based on the decision-making behavior of each thermal power enterprise. Finally, based on IEEE 30 bus system, the validity of the model is verified, the impact of different capacity compensation prices on the exit decision of thermal power enterprises and the overall operation of the market is analyzed.