Research on Settlement Mechanisms for the Allocation of Imbalance Funds in Regional Markets

In the pursuit of establishing a unified national electricity market in China, this study focuses on the development of regional electricity markets. It underscores the importance of coordination and operational synergy among provinces to create effective inter-provincial transaction models and settlement mechanisms. Key challenges identified include inconsistencies in settlement rules and the necessity for fair and efficient mechanisms to address imbalance capitals and cost-sharing among generating units.The research introduces a novel energy deviation settlement scheme designed to resolve potential distribution issues related to imbalance capitals in inter-provincial markets, thereby providing a framework that minimizes disruptions to the existing balance of interests among provinces. It analyzes three methods for selecting a unified settlement point and assesses their impacts on imbalance capitals and overall market efficiency.The findings indicate that the current full energy weighted settlement method may not effectively incentivize provinces to report energy consumption based on actual demand, leading to imbalances that disproportionately favor high-export provinces. This approach promotes fair competition, reduces inter-provincial conflicts, and fosters regional cooperation by aligning the interests of different provinces.