Abstract: At present, power reserve in South China region is still managed according to the "two rules", and some irrationalities exit in the design of reserve varieties, price mechanism, settlement mechanism and allocation of reserve resources. It is thus urgently needed to build a power reserve market of South China (Starting from Guangdong Province), and perfect the South China regional electric power market system. On the basis of analyzing the reserve market mechanism abroad and the existing problems of reserve management in the South China region, a power reserve market mechanism applicable to the South China regional power market development is proposed, and a reserve market clearing model is established. The reserve market clearing results under different modes are analyzed through numerical examples, which shows that, under the reserve market modes of offering quantity and price or only offering quantity, the opportunity costs are included in the clearing price, and can compensate the opportunity cost of the tender reserve capacity. The joint optimization mechanism of reserve and electric energy market can insure the income of the units participating in the reserve market is not lower than those only participating in electric energy, which will actively stimulate units to participate in reserve market.

Key words: South China region, management status, mechanism design, clearing model, electric power market, reserve market