Discussion on the hierarchical structures of the three gorges power market and future state power market

Abstract

The Three Gorges Power Market (TGPM) will be the first cross-region power market in China. A vital problem is how to design an appropriate bulk power market structure. Based on international experiences on power market designs and the current situations of China's power industry, the hierarchical structure for China's power markets is first discussed. There are basically three alternatives, i.e., the state-province (or city) two-layer structure, the state-region two-layer structure and the state-region-province (or city) three-layer structure. It is suggested that the state-region-province (or city) three-layer structure be adopted at the initial stage of the restructuring. While this stage, the regional power markets should be reinforced progressively and the final structure should be the state-region two-layer model. Based on this proposal, the structure and market participants of TGPM are next suggested.