A research on the purchase quantity allocation between contract market and power auction market

Abstract

In open electricity market, electricity purchasers will trade in two different ways of marketing. Contract and power auction market, a typical decisionmaking is how to determine purchasing proportion of two markets to reduce purchase expenses and avoid risks. Based on chance-constrained programming, a new purchase decision-making optimization model with stochastic constraint of Distribution Company is simplified into definite model. Solution is genetic algorithm based on stochastic simulation which coordinates purchase expenses and risks successfully. Finally, a numerical simulation demonstrates optimal distribution strategy clearly. Results indicate that it's helpful for electricity purchasers to seek optimal investment strategy in electricity market.