Electricity Procurement And Sale Strategies For Electricity Retailers Considering Users' Demand Response

Along with the No.9 electricity reform document was issued,Chinese retailer market is officially launched,a large number of electricity retailers are established around the country.As a new market subject in retailer market,electricity retailers have the advantages of representing users to purchase electricity from multiple power markets,therefore how to allocate the proportion of its electricity purchase and sale strategies becomes the core issue.In addition,in response to the increasing demand response awareness and incentive information,electricity users are able to adjust its electricity usage to match up with market operation in order to decrease their electricity expense.In other words,new market rules ensure users the right to directly participate in market trading,where their electricity usage will affect electricity retailers in electricity procurement and sale strategies.Under this background,this paper first analyzes and models the uncertainties faced by electricity retailers of purchasing and selling in multiple power markets,which builds the modeling foundation for electricity retailers electricity procurement and sale strategies.After that,referring to new electricity market's rules,this paper designs a a bi-level model for electricity retailers considering users' demand response which collaborates electricity procurement and sale strategies together,as well as considering users' electricity usage behavior,its upper level problem aims at maximuming electricity retailer's profit,while its lower level problem aims at maximuming users' utility.Moreover,this model takes bilateral contracts' penalty mechanism into account,and models the users who can participate in demand response by interacting with real-time market.In addition,since the risk will affect electricity retailers' decision making when trading in different electricity markets,this paper applies a common risk evaluate method in financial area — —conditional value at risk(CVaR),combing with risk preference coefficient to build an electricity procurement and sale strategies utility model in order to reflect electricity retailers behavior in electricity procurement and sale strategy more specifically.Finally,this paper uses one week data in U.S.PJM market to verify two proposed models.Result shows that considering users' demand response is able to give a better electricity procurement,while sale strategies and considering risk can simulate a more practical behavior and risk preference for electricity retailers.This research targets the new demand after electricity market reform and offers a new method in electricity procurement and sale strategies for electricity retailers.