Optimal Decision-Making of Trans-Provincial Electricity Market Subjects with Risks under Renewable Portfolio Standards

Wang, Hui; Chen, Yishu; Wu, Zhihui; Xu, Haocheng

doi:10.32604/ee.2022.016151

Cited by 6 publications

(8 citation statements)

References 69 publications

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“…In addition, the coupled interaction between TGCs and the power market has a significant impact on the behavior of power producers [19,20]. For example, Wang et al [21] constructed a decision-optimization model considering subjects' preferences and utility, and the results showed that TGC price is an important factor affecting the profitability of energy manufacturers. (3) Exploration of TGC price mechanisms.…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing the Effects of Tradable Green Certificates and Renewable Portfolio Standards through Demand-Side Decision-Making Simulation: A Case of a System Containing Photovoltaic Power

Wang

et al. 2023

Energies

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Understanding the effect of a tradable green certificate (TGC) and renewable portfolio standard (RPS) policy mix is of great importance for sustainable renewable-energy development and carbon neutrality, given that the demand side subjects are the responsible subjects under China’s RPSs and studies from the demand-side perspective are relatively limited. To fill this gap, this paper analyzes the coupled relationship between the TGC market and the electricity market as well as the reflexivity of the TGC market. Meanwhile, on the basis of modeling TGC prices and renewable-energy uncertainty, this paper constructs a Markov decision process (MDP) model to simulate the sequential decision-making process of the demand side and further proposes a solution model based on dynamic programming and evolutionary algorithms. The results show that: (1) In addition to policy parameters such as RPS weight, TGC price caps and penalties, a preference for short-term benefits and renewable-energy uncertainty also affect transaction behaviors on the demand side. (2) Increasing RPS weight within an appropriate range can stimulate demand for renewable power and TGC, while excessively low RPS weight will result in accumulation of unsold TGC. In addition, the preference for short-term benefits can stimulate demand for renewable power and curb demand for TGC. (3) An increase in the TGC price cap can stimulate demand for renewable power and restrain demand for TGC, but this phenomenon may not exist when RPS weight is too low or responsible subjects prefer short-term benefits. (4) Setting a penalty of no less than the TGC price cap is of great significance to ensure the operation of the TGC market and RPSs.

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Section: Literature Reviewmentioning

confidence: 99%

Assessing the Effects of Tradable Green Certificates and Renewable Portfolio Standards through Demand-Side Decision-Making Simulation: A Case of a System Containing Photovoltaic Power

Wang

et al. 2023

Energies

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“…However, these power packages lacked universality because of the assumption that RES purchase costs could be ignored. An optimal decision model for each trading subject was then constructed under the conditions of supply chain noncooperation and cooperation [25].…”

Section: Progress Of China's Renewable Portfolio Standardsmentioning

confidence: 99%

“…Zhang et al [41] has proposed building a renewable energy market trading plan with electricity sales companies as the main body and renewable energy trading volume as an evaluation indicator. Wang et al [25] has also put forward planning and construction suggestions for establishing a multi-level renewable energy trading market on a time scale. Further, Huang et al [35] has formulated two different renewable energy retail schemes according to user needs and analyzed the purchasing and selling decision behavior of electricity companies from the implementation of the quota system and environmental benefits.…”

Section: Design Concept Of the Renewable Portfolio Standards Mechanis...mentioning

confidence: 99%

Optimal Trading Decision-Making of Power Supply Chain under Renewable Portfolio Standards

Wang¹,

Xu²,

Zhao³

2021

Energy Engineering

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Under the background of implementing renewable portfolio standards and the ever-improving tradable green certificate scheme, the increasingly environmentally-friendly preference of power users is leading to changes in electricity demand, which, in turn, is driving changes in the decision-making behaviors of various actors in the power supply chain. Based on this, with the goal of pursuing maximum profit, consumer-power-demand functions have been introduced with some consideration of the factors of consumer preference to establish an optimal profit model for each trading subject in non-cooperative states of the power supply chain, under the constraints of meeting renewable energy portfolio standards. Here, the optimal strategy of each trading subject is presented by adopting the reverse induction method. Furthermore, examples are used to analyze factors such as the influence of environmental protection preferences, quota ratios, price substitutions, and market demand as well as the optimal profit of each trading subject in view of providing a reference for the decision-making in the power supply chain trading subjects.

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“…The key determinant of the game decision of each interest group under the RPS policy lies in the cost and benefit mechanism in the process of completing the RPSs [24]. Specifically, it is important for power generation enterprises to determine whether and what they could obtain from renewable energy generation and whether their renewable electricity generation could be fully accessed through the grid.…”

Section: Stakeholders In Rpsmentioning

confidence: 99%

Behaviours of Multi-Stakeholders under China’s Renewable Portfolio Standards: A Game Theory-Based Analysis

Wang¹,

Deng²,

He³

et al. 2021

Energy Engineering

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China has implemented both quantitative and policy incentives for renewable energy development since 2019 and is currently in the policy transition stage. The implementation of renewable portfolio standards (RPSs) is difficult due to the interests of multiple stakeholders, including power generation enterprises, power grid companies, power users, local governments, and the central government. Based on China's RPS policy and power system reform documents, this research sorted out the core game decision problems of China's renewable energy industry and established a conceptual game decision model of the renewable energy industry from the perspective of local governments, power generation enterprises and power grid companies. The results reveal that for local governments, the probability of meeting the earnings quota or punishments for not reaching quota completion are the major determinants for active participation in quota supervision. For power grid firms, the willingness to accept renewable electricity quotas depends on the additional cost of receiving renewable electricity and governmental incentives. It is reasonable, from the theoretical perspective, to implement the RPS policy on the power generation side. Electricity reform will help clarify the electricity price system and increase the transparency of the quota implementation process. Policy implications are suggested to achieve sustainable development of the renewable energy industry from price incentives and quantity delivery.

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Optimal Decision-Making of Trans-Provincial Electricity Market Subjects with Risks under Renewable Portfolio Standards

Cited by 6 publications

References 69 publications

Assessing the Effects of Tradable Green Certificates and Renewable Portfolio Standards through Demand-Side Decision-Making Simulation: A Case of a System Containing Photovoltaic Power

Assessing the Effects of Tradable Green Certificates and Renewable Portfolio Standards through Demand-Side Decision-Making Simulation: A Case of a System Containing Photovoltaic Power

Optimal Trading Decision-Making of Power Supply Chain under Renewable Portfolio Standards

Behaviours of Multi-Stakeholders under China’s Renewable Portfolio Standards: A Game Theory-Based Analysis

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