A Framework of Customizing Electricity Retail Prices
Journal Publication ResearchOnline@JCUAbstract
The problem of designing customized pricing strategies for different residential users is investigated based on the identification results of residential electric appliances and classifications of end-users according to their consumption behaviors. This study is based on the following assumptions: 1) Each retailer purchases electricity from the forward contract market, day-ahead spot market, and real-time market; 2) the competition among retailers is modeled by a market share function; 3) each retailer adopts fixed time-of-use prices for end-users; 4) the price fluctuations in day-ahead and real-time spot markets as well as uncertainty of electricity consumption behaviors are considered as main sources of risk. Under these assumptions, a pricing framework for retailers is established based on the bilevel programming framework and the optimal clustering in a time sequence. Meanwhile, profit risk is considered by taking conditional value at risk as the risk measure. The proposed bilevel optimization model is finally reformulated into a mixed-integer nonlinear programming problem by solving Karush-Kuhn-Tucker conditions. The online optimization solvers provided by the network-enabled optimization system server and the commercial solver AMPL/GUROBI are used to solve the developed models, respectively. Finally, a case study is employed to demonstrate the feasibility and efficiency of the developed models and algorithms.
Journal
IEEE Transactions on Power Systems
Publication Name
N/A
Volume
33
ISBN/ISSN
1558-0679
Edition
N/A
Issue
3
Pages Count
14
Location
N/A
Publisher
Institute of Electrical and Electronics Engineers
Publisher Url
N/A
Publisher Location
N/A
Publish Date
N/A
Url
N/A
Date
N/A
EISSN
N/A
DOI
10.1109/TPWRS.2017.2751043