Conditional-Robust-Profit-Based Optimization Model for Electricity Retailers with Shiftable Demand

Zhang, Qi; Zhang, Shaohua; Wang, Xian; Li, Xue; Wu, Lei

doi:10.3390/en13061308

Cited by 9 publications

(4 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…At the lower-level, these producers respond to the retailer's price bids in order to maximize their revenues. In [32] electricity optimal strategy of retailers is investigated by considering shifts of the demands. At the upper-level, the retailer's required energy from available options as well as shiftable loads' incentive prices are determined.…”

Section: Literature Reviewmentioning

confidence: 99%

Risk-based Offering strategy for a retailer in a wholesale and local electricity market considering demand response

2023

View full text Add to dashboard Cite

Uncertainties in wholesale market prices and consumer demand pose risks to electricity retailers. Distributed energy resources (DER) and responsive demand exchange energy in the local market. Local markets provide a good opportunity for retailers to improve their economic situation by influencing market prices through demand response (DR). Thus, the issue that needs to be addressed is how the interaction of retailers in the local market can affect its strategy. This paper proposes a new framework to assist electricity retailers in optimizing the offering strategy in both wholesale and local electricity markets under uncertainty. The proposed framework is based on a stochastic bi-level optimization model. At the upper level, with the aim of maximizing profit of retailers, optimal decisions are made on the power purchased from wholesale and local markets. At the lower level, the local market is considered, with the aim of minimizing the operating cost. Wholesale market price uncertainties and the production of renewable resources are modeled using a set of scenarios. The model is turned into a single-level problem by substituting the lower-level with its KKT conditions. Simulation results showed that using the proposed method, the average retailer's profit has increased approximately 12% to 16% comparing conventional methods.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Risk-based Offering strategy for a retailer in a wholesale and local electricity market considering demand response

2023

View full text Add to dashboard Cite

show abstract

“…Applications of bilevel programming to energy networks are reviewed in [18]. Extensions to the stochastic case are presented, e.g., in [31,32].…”

Section: Literature Reviewmentioning

confidence: 99%

On Optimistic and Pessimistic Bilevel Optimization Models for Demand Response Management

2021

View full text Add to dashboard Cite

This paper investigates bilevel optimization models for demand response management, and highlights the often overlooked consequences of a common modeling assumption in the field. That is, the overwhelming majority of existing research deals with the so-called optimistic variant of the problem where, in case of multiple optimal consumption schedules for a consumer (follower), the consumer chooses an optimal schedule that is the most favorable for the electricity retailer (leader). However, this assumption is usually illegitimate in practice; as a result, consumers may easily deviate from their expected behavior during realization, and the retailer suffers significant losses. One way out is to solve the pessimistic variant instead, where the retailer prepares for the least favorable optimal responses from the consumers. The main contribution of the paper is an exact procedure for solving the pessimistic variant of the problem. First, key properties of optimal solutions are formally proven and efficiently solvable special cases are identified. Then, a detailed investigation of the optimistic and pessimistic variants of the problem is presented. It is demonstrated that the set of optimal consumption schedules typically contains various responses that are equal for the follower, but bring radically different profits for the leader. The main procedure for solving the pessimistic variant reduces the problem to solving the optimistic variant with slightly perturbed problem data. A numerical case study shows that the optimistic solution may perform poorly in practice, while the pessimistic solution gives very close to the highest profit that can be achieved theoretically. To the best of the authors’ knowledge, this paper is the first to propose an exact solution approach for the pessimistic variant of the problem.

show abstract

“…where p( k i ) is the probability density function of competitor's bidding coefficient. According to robust optimization theory, R RB i (k p i ) can be obtained by solving the following models (Zhang et al, 2020):…”

Section: The Lower Level Model: An Optimal Generation Companies Bidding Strategy Model Based On Robust Optimization Theorymentioning

confidence: 99%

Optimal Planned Electricity Allocation Model for Power Exchange Under the Plan-Market Double-Track Mechanism

Tang

Zhang

et al. 2021

Front. Energy Res.

View full text Add to dashboard Cite

The orderly deregulation of planned electricity generation and consumption is an important measure for electricity market reform in several countries (such as China), and a reasonable proportion of planned electricity in the total energy consumption is conducive to the smooth transition from the regulation mode to the market mode. Under the plan-market double-track mechanism (PMDM) implemented, a modified linear bidding function of generation companies (GCs) is first proposed, and the unified clearing price of unilateral generation market is determined accordingly. Second, considering the robust bidding strategies of generation companies, a bi-level optimal planned electricity allocation model for power exchange (PX) is constructed. In the upper level, the proportion of planned electricity is optimized by PX to minimize the CVaR of Lerner Index (LI), so as to maintain the market power at a low level. In the lower level, based on the robust optimization theory and the prediction of rival bidding, the bidding strategy of a GC is optimized by solving a specified max–min problem. Simulations based on data from a provincial electricity market in China illustrate that the market power can be reduced through a reasonable proportion of planned electricity designed by the PX. In addition, when more GCs tend to avoid a market risk, the proportion of planned electricity can be increased accordingly.

show abstract

Conditional-Robust-Profit-Based Optimization Model for Electricity Retailers with Shiftable Demand

Cited by 9 publications

References 41 publications

Risk-based Offering strategy for a retailer in a wholesale and local electricity market considering demand response

Risk-based Offering strategy for a retailer in a wholesale and local electricity market considering demand response

On Optimistic and Pessimistic Bilevel Optimization Models for Demand Response Management

Optimal Planned Electricity Allocation Model for Power Exchange Under the Plan-Market Double-Track Mechanism

Contact Info

Product

Resources

About