Research On Co-optimization Of Energy Consumption Plan And Electricity Market Transaction Of Energy-intensive Production Company

In recent years,the market-oriented reform of China’s power industry has been gradually promoted,which has given birth to an emerging mode of power purchase side transaction.This mode is called direct power purchase of large power customers.The rise of direct electricity purchase has a significant impact on the power market transactions of large users.On the one hand,the direct electricity purchase breaks the mode and rules of the traditional highly regulated electricity market and gives large users the right to participate in the centralized bidding transaction in the spot electricity market,which is of great significance to increase users’ choice,break monopoly and improve market operation efficiency.On the other hand,directly power purchase is a important measure to deepen the end-user electricity electricity pricing mechanism.It helps to solve the problems of unfavorable guides of reasonable electricity consumption and fair burden result from the cross subsidy in industry and commerce.It can also improve electricity price lever to market supply and demand guide,encourage customers to optimize their own power.It can be seen that the participations of large users in the electricity market is an inevitable trend in the future.Under such a background,this paper aims at providing the decision making with optimal economic benefit for energy-intensive companies,by providing the co-optimization of power consumption plan and electricity market transaction in the future open power market environment.The main research contents are shown as follows:(1)From the perspective from problem background and its mathematical model:Based on the background of the marketization of power industry and the inevitable trend of large electricity consumers participating the direct power purchase,we first extend the study of traditional energy management of energ-intensive production company from the scopu of electricity consumption plan to co-optimization of electricity consumption plan and the transaction in electricity market.A new co-optimization model of electricity consumption plan and the transaction in electricity market is built.This model overcomes the problems traditional researches that is difficult to serve the managerial practices due to they cannot describe the effect of electricity price to the electricity consumption behaviors of electricity consumers.Our paper first realizes the quantitative analyze of the impact of the transaction in electricity market to the operational management cost of energy-intensive production company.We propose a co-optimization framework and model for co-decision-making of production-inventory planning and the transaction in electricity market based on Stackelberg game and bilevel programming theories.(2)From the perspective of optimization algorithm theory:Aiming at the proposed model in this paper,a new effective global optimal solution approach is designed.The proposed model is a large-scale complex mathematical programming model.It has the characteristics of the game among multiple interest bodies,multiple optimization layers and NP-hard.A large number of auxiliary discrete variables and big-M constraints are introduced due to the involvement of a large number of nonlinear complementary constraints.This leads to the undesirability of the efficiency of the existing algorithm since the linear reformulation process is complex and convergence speed is slow.Aim at the shortcoming of the existing algorithm in linearizing the nonlinear complementary constraints,a new hybrid upper bound update method which combines strong duality theory and KKT condition is proposed.This algorithm can significantly reduce the computational time in each iteration,improve the computational efficiency and provide better decision support for company in large-scale managerial practice.Finally,based on the numerical example,the research conclusions of this paper are summarized as follows:1)The participation of the transaction in electricity market of energy intensive production companycan give full play to the regulation of electricity price levels.Energy-intensive production company can be encouraged to shift its electricity demand from peak periods to valley periods and actively participate in the peak shaving and valley filling of the electric power system.It help to realize win-win situation of energy-intensive production company and social welfare.2)The optimal production cost and the optimal power purchase cost of energy-intensive production company cannot be achieved simultaneously.The core problem of co-optimization lies in the realization of the tradeoff between these two cost.3)When facing with the uncertain electricity consumption plan,the economical benefit of conservative bidding strategy is better than that of radical bidding strategy when making the transaction of electricity market.4)Compared with the traditional model which does not consider the power market transaction,the co-optimization model proposed in this paper can effectively optimize the power consumption behavior of energy-intensive production company and bring significant economic benefit by reducing its power consumption cost.