An Optimization Strategy of Price and Conversion Factor Considering the Coupling of Electricity and Gas Based on Three-Stage Game

Abstract

In order to improve the profits of electricity utility company (EUC) and gas utility company (GUC) and reduce the electricity and heat cost of users, an energy trading and pricing scheme based on three-stage game is proposed. Firstly, a three-stage optimization problem is established, and the conversion between electricity and gas is considered. Meanwhile, the conversion factor is introduced and coordinated with the energy price to adjust the balance of supply and demand. Then, the equilibrium solution of the game is obtained by using Lagrange function and backward induction method. In addition, an iterative algorithm is developed to obtain the optimal conversion factor between electricity and natural gas. Numerical results show that the profits of EUC and GUC are increased by 31.6% and 14.4%, the electricity and heat profits of energy hubs (EHs) are increased by 3% and 6.4%, and the electricity and heat cost of users are reduced by 9.25% and 14.05%. Note to Practitioners—In the multi-energy market, trading and pricing strategies have attracted more and more attention. Based on this, many scholars only studied pricing strategy to balance the supply and demand. However, in the context of multi-energy coupling, the previous pricing strategy is not effective. In this paper, we propose a new pricing strategy, with which the conversion factor can cooperate with the energy price to achieve the balance between supply and demand. The new pricing strategy can increase the profits of electricity utility companies and gas utility companies and reduce the costs of users.