A Method to Deal With Inter-regional and Inter-provincial Transaction Settlement Deviation Quantity Based on Kernel Density–Entropy Weight

Abstract

The mismatch between energy distribution and power load in China can be alleviated by inter-regional and inter-provincial power transactions. However, it also brings challenges to transaction settlement. In the new round of electric power reform, the transaction settlement deviation quantity needs to be more standardized. Based on the analysis of the related work, this article used the analytical framework of the analytic hierarchy process to calculate the transaction type weight, the inter-regional, and the inter-provincial weight, respectively, and accordingly, quantifies the amount of deviation quantity allocated by the corresponding trading subjects. According to the size and volatility of the trading quantity, we further propose a comprehensive weighting method based on kernel density and entropy weight to quantify the deviation quantity of inter-regional and inter-provincial trading subjects of different trading types. Specifically, this article first used the kernel function weighting method to calculate the weights of different transaction types that measure the transaction quantity, and then the improved entropy weight method was used to calculate the weights of different transaction types that reflect the volatility of the transaction quantity. Then, the comprehensive weights were constructed by considering the influence of the above two dimensions on the distribution of the deviation electricity simultaneously. The deviation electricity responsibility determination model was used to clarify the transaction subject's deviated electricity responsibility, and the deviated electric quantity calculation model was used for quantification. At last, the validity and practicability of the method were verified through the analysis of examples using the inter-regional and inter-provincial power transaction data from China.

An Assessment Method of Deviation Electricity Responsibility in China’s Forward Electricity Market Based on Time-Sharing Trading Prices

“…Regarding the management and treatment of DE, Wang et al employed the Analytic Hierarchy Process to quantify DE from aspects such as transaction type weight and inter-regional, inter-provincial weight [8]. They established a DE responsibility judgment mechanism and a deviation accounting model, clarifying the responsibility for DE across regions and provinces, as well as the deviation volume that trading entities should bear.…”