Optimal pricing strategy of power‐retailing companies considering demand response in block bidding markets

Guo, Ningxuan; Yi-nan, Wang; Xu, Zhixiang; Yan, Gangfeng

doi:10.1049/iet-gtd.2019.0913

Cited by 10 publications

(8 citation statements)

References 31 publications

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“…The limit of this method is that it ignores the load curve's original shape. Therefore, an improved approach was proposed in [32]. It sets the step size as 1 h and divides the load curve using durations from 1 h block to 24 h block.…”

Section: Framework Of Block‐based Forward Contract Trading Methodsmentioning

confidence: 99%

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Block‐based procurement model between retailers and wind farms in medium‐long term market

Zhao

Wang

Ding

et al. 2021

IET Generation Trans & Dist

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With the fast development of wind power generation, many countries actively encourage wind power to trade in the medium‐long term market. However, the traditional forward contracts from medium‐long term markets are only suitable to conventional power generation enterprises, instead of wind farms. To facilitate the accommodation of wind power in the medium‐long term market, this paper focuses on two problems: The framework of the block‐based forward contract trading method and the procurement strategy of retailers with block‐based contracts. First, a novel block‐based forward contract is proposed, where the time attributes, that is, starting and ending time, and power during each period are stipulated. Aggregating all the block‐based forward contracts will naturally form the power supply curve, which can provide boundary information for wind farms when they take part in other markets. Secondly, a chance‐constrained procurement strategy model is proposed for retailers, where the uncertainty of wind power generation, constraints of block‐based contracts, and quota obligations of retailers are considered. Furthermore, a bilinear Benders decomposition algorithm with a variant of Jensen's inequalities is applied to solve the proposed model. Finally, experimental results demonstrate the effectiveness of the proposed model and method, which is computationally efficient in solving the chance‐constrained procurement strategy problem.

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Section: Framework Of Block‐based Forward Contract Trading Methodsmentioning

confidence: 99%

“…Pgr,(k) t and ξ(k) are the optimal value of P gr t and 𝜉 at the k-th iteration. 𝜆 31)- (32) in the optimality subproblem. These bilinear benders cuts can be linearized using the McCormick linearization method [36].…”

Section: Bilinear Procurement Strategy Master Problemmentioning

confidence: 99%

Block‐based procurement model between retailers and wind farms in medium‐long term market

Zhao

Wang

Ding

et al. 2021

IET Generation Trans & Dist

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“…where η 2 denote the iterative step size of the demand-side game, FD j denote the forward difference of customer j, and [•] A means to handle the finite-difference through the active set algorithm. The block division method in (1) and ( 2) for the trading center in block bidding markets can refer to the Load Division Method in [16]. This method is based on the principle of bottom-up, and the load blocks are divided in order from a long duration to short.…”

Section: Solution Approachmentioning

confidence: 99%

“…Elghitani et al [15] proposed a method for residential demand aggregation to minimize the total consumption costs, based on a multi-class demand loads queuing system. Guo et al [16] proposed an optimal pricing strategy for retailers to maximize its profit and an optimal DR resources scheduling model for minimizing customers' total electricity purchase costs, based on the block trading mode. Sanchez de la Nieta et al [17] modeled demand-side management as flexible block orders, and the market-clearing algorithm decides the accepted order according to the principle of social welfare maximization.…”

Section: Introductionmentioning

confidence: 99%

“…Khanna et al [19] described a price-based DR methodology for the application of complete households incorporating key DR features, such as an electric vehicle and some smart residential appliances. However, most researches are based on cooperative game theory, such as [15][16][17], which rely on an aggregator or a third-party algorithm to optimize customers' load resources. Besides, the widely known block orders in [17] is difficult for small scale residential customers to participate in.…”

Section: Introductionmentioning

confidence: 99%

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Non-Cooperative Game in Block Bidding Markets Considering Demand Response

et al. 2020

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With the reform of electricity markets, demand response (DR) plays an important role in providing flexibility to the markets. Block bidding market is a new market mode, which is based on the concept of “the same quality, the same price”. The mechanism has great effects in reducing start-stop related costs. In this paper, we propose a double-sided non-cooperative game model in block bidding markets with a DR program. The model combines the advantages of block bidding and the simplicity of hourly bidding. In the model, one side is the non-cooperative game of supply-side power firms, and we propose a novel supply function bidding model based on block duration and load capacity to maximize each firm’s profit. The other side is the demand-side different types of customers, and we propose a DR model that combines hourly-various prices with the block bidding mechanism to maximize each customer’s payoff. The overall market optimization problem is solved by a distributed iterative algorithm, which has great convergence performance. We verify the proposed model on real data, and the results show that the demand load curve becomes flattened with DR, and the total generation costs decrease while the social welfare is significantly improved.

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Methods of participating power spot market bidding and settlement for renewable energy systems

et al. 2022

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Optimal pricing strategy of power‐retailing companies considering demand response in block bidding markets

Cited by 10 publications

References 31 publications

Block‐based procurement model between retailers and wind farms in medium‐long term market

Block‐based procurement model between retailers and wind farms in medium‐long term market

Non-Cooperative Game in Block Bidding Markets Considering Demand Response

Methods of participating power spot market bidding and settlement for renewable energy systems

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