Hydropower Pricing Options for Cross-Border Electricity Trading in China Based on Bi-Level Optimization

Regional cross-border electricity trading is popular in price and cooperation. It a reliable path to alleviate the shortage of power supply during rapid economic growth. As an important export commodity, pricing options for hydropower directly relate cooperation intention business parties. This study demonstrates formation methods internal relationships cascade stations CBET. To simulate decision-making bilateral forward contract, bi-level optimization model was constructed, objectives each layer represent interests both The BOM linearized with Karush-Kuhn-Tucker conditions strong duality, finally solved using mixed-integer linear programming. prices CHSs southwestern China were calculated under different results absorbed actual transaction case. Consequently, complementarity between exporting countries verified. most suitable option CBET determined, that unified based on marginal cost, be 481 CNY/MW∙h, which 20% 60% higher than thermal photovoltaic from other countries. Furthermore, national policy support subsidies are key guarantees sustainable development CBET, can reduce discount below generation by 30%.