A study on the two-part transmission pricing method taking into account the economic differences between provinces

With the strengthening of inter-provincial electricity market transactions at the provincial level and above and few blockages in inter-provincial transmission lines, it is easy to observe the phenomenon of flattening of nodal electricity price based on provinces. This situation tends to favor provinces with higher economic levels, which is unfair to provinces with lower economic levels. Therefore, it is necessary to maintain a certain price difference in electricity transactions between provinces. Addressing this issue, this paper proposes a two-part transmission pricing method that takes into account inter-provincial economic differences. Firstly, the roles of energy price and capacity price in the two-part pricing mechanism are analyzed, suggesting that the two-part pricing mechanism should be adopted as the basic structure for regional transmission pricing. Secondly, considering factors such as economic disparities between provinces, transmission costs, and regional grid electricity consumption, the paper proposes using energy price to reflect the marginal change in transmission energy cost within the regional grid and capacity price to reflect the economic disparities between provinces. The paper determines the range of values for energy and capacity price for inter-provincial transmission pricing, based on which a transmission pricing method aimed at minimizing the purchasing costs of all users within the regional grid is proposed. Finally, taking a certain regional grid as an example, the correctness and rationality of the model constructed are validated.