Application of Block Orders in European Electricity Market and Its Implications for Guangdong

Guangdong is one of the first 8 pilot provinces in China to start electricity market construction and has developed a relatively complete market system so far. The medium to longterm trading is based on hourly supply and demand curves, and day-ahead market participants are required to submit linear hourly orders with stepwise prices. While in European electricity market, heterogeneous types of orders and rules are allowed, one of which is termed the block order. Block orders are characterized by fill-or-kill features and introduce nonconvexity into market model. They might make the market better meet the needs of market entities, but demand for higher performance of clearing algorithms as well.