Abstract: The coordination method for provincial market and inter-provincial market is the core for two-level market operation, which includes coordination for two-level market congestion management and coordination for two-level market clearing. Two two-level market coordination methods, including the market splitting method and the inter-provincial flow-based market coupling method are introduced, and their characteristics are discussed with specific cases. The market splitting method calculates the power flow through the power transfer factors, and gradually increases the congested lines in the system as the constraint condition for the market clearing model. Through multiple iterations, the method can achieve the market effect with the same nodal price for the one-level market. The flow-based market coupling method calculates, under the condition that the net export of each province is known, the power flow of the tie lines between provinces through the regional power transfer factor, and achieves the inter-provincial market clearing with consideration of the tie line power flow constraint. The flow-based coupling method can directly obtain inter-provincial market results through the declared provincial net export curves without multiple iterations. The market splitting method is suitable for the case that the provincial market for each province is well constructed, while the flow-based coupling method is suitable for the case that provincial market for each province is different in market perfection.

Key words: two-level power market, congestion management, market clearing, nodal price, power transfer distribution factor