With the increasing proportion of renewable energy in Ningxia's power system

the electricity market faces growing challenges

particularly the accumulation of imbalance funds.This study focuses on the impact of imbalance funds on stable market operation and develops an improved settlement system based on multi-objective optimization.Data analysis identifies the primary sources of imbalance funds in Ningxia’s electricity market

including deviations between generation and consumption plans

forecast errors of renewable energy output

and imperfections in the market-clearing mechanism.To address these issues

a settlement optimization model is developed

integrating renewable energy volatility and power generation plan execution discrepancies

and establishing a multi-constraint optimization framework centered on minimizing imbalance funds.This framework considers system power balance

nodal voltage limits

and generation plan deviations as multidimensional constraints.Empirical analysis of short-term and medium-to-long-term trading data validates the effectiveness of the proposed approach.Results show that the optimized settlement mechanism can effectively reduce the accumulation of imbalance funds

significantly improve market operational efficiency and trading fairness

and provide a practical technical approach for promoting the healthy and sustainable development of Ningxia′s electricity market.