Research On Bidding Strategy For Large-scale Electric Water Heater User Participating Power Market

With the rapid development of economy，consumers has made a higher requests toquality and reliability of power supply. Power industry is facing multiple pressuresfrom resources, environment and economy. In order to effectively alleviate thecontradiction of power supply and demand, new energy need to be developed, Inaddition, the user mode should be optimized by means of inspiring and guiding toimprove efficiency and reliability of power system.For this reason, this paper firstly introduced the study of power market consideringdemand response. Then, considering the load of electric water heater as demandresponse object, the research priorities of this dissertation are as follows.1) This dissertation analyzes the working characteristics of the electric water heater.To achieve effective management of the electric water heater load and improve theenthusiasm of users to participate in power market competition, a new tradingmechanism for an agent with a polymerization of large-scale electric water heaterload to participate in power market competition is designed. The transaction systemincludes two parts, one is the transaction of user and agent, and another is thetransaction of agent and dispatch center, and both of them trade on every ten minutes.The agent predicts electricity price level on every ten minutes and supplies it to usersthat depending on forecasted electricity market price to formulate the demand-pricestrategy. With a polymerization of all user demand-price information, the agentformulates bidding strategy with a target of profit maximization according toforecasted electricity market price.2) The electric water heater user formulates the demand-price strategy according toforecasted electricity market price that is supplied by agent. Every decision-maker isnot fully rational from a psychological point of view. So, users’ quotation decision isanalyzed from the perspective of bounded rationality in this article. Users segmentalthe transaction prices of the day before and segmental the maximum power of theelectric water heater in accordance with the power of heating pipe. Users performmental assignment on each section of price and each section of power, which meansclassifying the price and power into differ mental accounts for differential bidding.Based on the mental accounting theory, decision model of demand-price bidding isestablished. Through the characterization of each mental account, the different riskpreference factor, different goals of expected benefits and the level of desire achieving the expected benefits of target are set to each mental account. Numericalexample indicates that the proposed bidding decision-making model based on themental accounting theory can quickly responds to electricity market price change. Atthe same time the efficient use of electricity is improved under the premise of meetingthe needs of users of electric water heaters.3) The bidding strategy of agent with a polymerization of large-scale electric waterheater load. Sorting all bid prices from high to low and accumulating thecorresponding load demand, the agent gets the bidding curves of aggregated user side.The bidding process of an agent is analyzed from two perspectives, the first is toignore the completion between agents while the second considering it. In this paper,the bidding process of an agent with an aggregation of ten electric water heater load isconsidered to validate the proposed bidding decision model. The simulation resultsshow that both models can not only well meet the needs of users, but also achievesubstantial revenue, although that the bidding decision model considering thecompetition is more suitable for the reality of the market. When the power systemencountered in emergency or receiving the scheduling task, we can use the guide priceof dispatch center instead of forecasting price to effectively guide users’ powerconsuming, finally achieve the specific dispatching purposes of dispatch center.