The coordination of enrgy transition

fixed cost recovery

and sufficient generation supply leads to a new challenge for a traditional capacity market mechanism. Moreover

in order to better match network expansion at the same time

it is crucial to redesign the capacity market mechanism considering system topology. In this paper

a novel capacity market mechanism is proposed considering spot market operations

network expansion

and energy transition

which can minimize the total cost of capacity investment

network expansion

and generation operations

while satisfying the energy transition constraints and topology circumstances. Specifically

the capacity market mechanism co-ordinated with spot market operations is illustrated

in which the energy transition and network constraints are embedded. Then

a bi-level optimization model is established where the trade organizers minimize the total cost of both investment and operations

subject to the spot power market simultaneously minimizing the local dispatching costs. The numerical results of a test system show that more economical capacity portfolios can be obtained by constructing reasonable transmission lines

thereby obtaining a more optimal market cost. A detailed multi-scenario simulation is further analyzed to verify the effectiveness of the proposed market mechanism.