Strategic Behavior of Retailers for Risk Reduction and Profit Increment via Distributed Generators and Demand Response Programs

Energies

Shahaboddin Shamshirband¹  Mahmood Hosseini Imani²  Shaghayegh Zalzar³  Amir Mosavi⁴ 

[1] Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh City, Vietnam;Department of Electrical Engineering, Faculty of Engineering, University of Guilan, Rasht 4199613776, Iran;Department of Energy, Politecnico di Torino, 10129 Turin, Italy;Institute of Structural Mechanics, Bauhaus University Weimar, 99423 Weimar, Germany;

关键词: retailer;    risk management;    demand response programs;    stochastic programming;    forward contracts;   

DOI  :  10.3390/en11061602

来源: DOAJ

【 摘 要 】

Following restructuring of power industry, electricity supply to end-use customers has undergone fundamental changes. In the restructured power system, some of the responsibilities of the vertically integrated distribution companies have been assigned to network managers and retailers. Under the new situation, retailers are in charge of providing electrical energy to electricity consumers who have already signed contract with them. Retailers usually provide the required energy at a variable price, from wholesale electricity markets, forward contracts with energy producers, or distributed energy generators, and sell it at a fixed retail price to its clients. Different strategies are implemented by retailers to reduce the potential financial losses and risks associated with the uncertain nature of wholesale spot electricity market prices and electrical load of the consumers. In this paper, the strategic behavior of retailers in implementing forward contracts, distributed energy sources, and demand-response programs with the aim of increasing their profit and reducing their risk, while keeping their retail prices as low as possible, is investigated. For this purpose, risk management problem of the retailer companies collaborating with wholesale electricity markets, is modeled through bi-level programming approach and a comprehensive framework for retail electricity pricing, considering customers’ constraints, is provided in this paper. In the first level of the proposed bi-level optimization problem, the retailer maximizes its expected profit for a given risk level of profit variability, while in the second level, the customers minimize their consumption costs. The proposed programming problem is modeled as Mixed Integer programming (MIP) problem and can be efficiently solved using available commercial solvers. The simulation results on a test case approve the effectiveness of the proposed demand-response program based on dynamic pricing approach on reducing the retailer’s risk and increasing its profit.

【 授权许可】

Unknown