A mechanism to overcome barriers to inter-provincial power supply substitution in China

Inter-provincial barriers hinder the optimization process of power resource allocation, resulting in a coexistence of idle low-cost power plants and high-cost power plants within the region. This paper investigates the size measurement and elimination of interprovincial barriers. It also proposes a specific program for regional unified electricity market clearing and eliminating inter-provincial barriers. The results indicate that this mechanism enables power supply substitution without causing harm to market players and overcomes inter-provincial barriers to optimal resource allocation. It promotes the rational allocation of power resources and reduces power supply costs within the region.