Coordinated planning of thermal power, wind power, and photovoltaic generator units considering capacity electricity price

Abstract With the implementation of China's carbon reduction policies, the role of thermal power units will transition to a regulating power source. Hence, the electricity market fails to accurately reflect the capacity value of thermal power units, resulting in potential future losses for these units. Therefore, it is imperative to establish a rational capacity compensation mechanism that guarantees the revenue of thermal power units and offers effective investment and construction signals. Therefore, this paper proposes a capacity compensation mechanism for thermal power units based on effective capacity. To achieve this, a two‐layer power source planning model is established. At the upper level of the model, the installed capacity and capacity price of various types of power sources are optimized, while minimizing the operating costs of the planning horizon year under constraints such as annual net profit of units. The lower level focuses on the operation of typical days, optimizing the output of various types of units. Through case analysis, it can be concluded that the proposed model can achieve coordinated planning of capacity and capacity prices for various types of units, effectively ensuring the economic efficiency of the system while safeguarding the revenue of each unit.