Pricing contract design of a multi-supplier-multi-retailer supply chain in hybrid electricity market

Abstract

PurposeIn the hybrid electricity market consisting of renewable and conventional energy, the generation output of renewable power is uncertain because of its intermittency, and the power market demand is also fluctuant. Meanwhile, there is fierce competition among power producers in the power supply market and retailers in the demand market after deregulation, which increases the difficulty of renewable energy power grid-connection. To promote grid-connection of renewable energy power in the hybrid electricity market, the authors construct different contract decision-making models in the “many-to-many” hybrid power supply chain to explore the pricing strategy of renewable energy power grid-connecting.Design/methodology/approachConsidering the dual-uncertainty of renewable energy power output and electricity market demand, the authors construct different decision-making models of wholesale price contract and revenue-sharing contract to compare and optimize grid-connecting pricing, respectively, to maximize the profits of different participants in the hybrid power supply chain. Besides, the authors set different parameters in the models to explore the influence of competition intensity, government subsidies, etc. on power pricing. Then, a numerical simulation is carried out, they verify the existence of the equilibrium solutions satisfying the supply chain coordination, compare the differences of pricing contracts and further analyze the variation characteristics of optimal contract parameters and their interaction relations.FindingsRevenue-sharing contract can increase the quantity of green power grid-connection and realize benefits Pareto improvement of all parties in hybrid power supply chain. The competition intensity both of power supply and demand market will have an impact on the sharing ratio, and the increase of competition intensity results in a reduction of power supply chain coordination pressure. The power contract price, spot price and selling price have all been reduced with the increase of the sharing ratio, and the price of renewable power is more sensitive to the ratio change. The sharing ratio shows a downward trend with the increase of government green power subsidies.Originality/valueOn the basis of expanding the definition of hybrid power market and the theory of newsvendor model, considering the dual-uncertainty of green power generation output and electricity market demand, this paper builds and compares different contract decision-making models to study the grid-connection pricing strategy of renewable energy power. And as an extension of supply chain structure types and management, the authors build a “many-to-many” power supply chain structure model and analyze the impact of competition intensity among power enterprises and the government subsidy on the power grid-connecting pricing.

Decisions of pricing and delivery-lead-time in dual-channel supply chains with data-driven marketing using internal financing and contract coordination

“…(2019) discussed the coordination effect of a value-added revenue-sharing contract on the wind power supply chain. Zhu et al . (2021) adopted a revenue-sharing contract to coordinate the hybrid power supply chain members.…”

“…For example, Kong et al (2019) discussed the coordination effect of a value-added revenue-sharing contract on the wind power supply chain. Zhu et al (2021) adopted a revenue-sharing contract to coordinate the hybrid power supply chain members. Zhong et al (2022) investigated the effect of a revenue-sharing contract on the supply chain with uncertain yield and demand.…”

Research on Supplier Evaluation Method Based on Improved Fuzzy Evaluation Model

“…At present, more research work has been done around supplier evaluation at home and abroad, including not only the construction of evaluation index system, but also the innovation of evaluation methods, which mainly involves multivariate discriminant analysis (MDA), fuzzy comprehensive evaluation method, gray clustering trigonometry, neural network, and support vector machine, etc [5][6][7][8][9]. Literature [5] conducted a credit scoring study on Tanzanian commercial banks using MDA, but the assumptions of its independent variables are difficult to fulfill in practice.…”

Capacity investment decisions of energy storage power stations supporting wind power projects

“…However, wind and photovoltaic power generation are characterized by intermittentness, and power output varies at different times (Zhou et al ., 2018; Zhu et al ., 2021). Moreover, the distribution of wind and solar resources in China is seriously unbalanced, resulting in evident instability in the wind and photovoltaic power supply.…”