Dynamic pricing model for direct power purchase by large consumers based on risk factors of transmission network

Abstract

Electricity price method is a key factor that affects the development of the power market. Existing power transmission and distributed annual costing method cannot reflect the influence of a user on transmission costs when various power stations are selected to purchase electricity across periods. This study proposes a dynamic price model based on a time-space risk factor, which can be used to purchase electricity directly for large users and reflect different risks of environments encountered in power grids. To determine the monthly calculations for a dynamic tariff method, the power transmission and distribution costs are split into two categories. In this study, the dynamic electricity price model is constructed. Thus, users can select low-risk multiple energy consumption months in accordance with customers themselves’ characteristics and reduce transmission pressure during the high-risk period of the network. Therefore, the reliability of the power grid can be improved. The proposed method is tested using an example. Results show that the proposed model is effective and practical and can provide a reference for the government’s estimation of transmission and distribution prices.