Abstract
Block bidding market (BBM) is a new electricity market mode in the day-ahead market, which is in the stage of development and promotion in China. It is based on the idea that energy should have the same price according to the continuous duration of load. In this study, the authors propose an optimisation model of pricing and purchasing strategy for power-retailing companies in BBMs, based on bilateral contracts with customers and portfolio management of demand response resources. The model consists of an expected profit maximisation problem of supplying energy to end-customers, and a total cost minimisation problem concerning the dispatching of fixed loads and shiftable loads. The proposed model is formulated as a bi-level mixed-integer non-linear program. A load division method is proposed to get better division result by eliminating duration restrictions on divided blocks. The proposed approximate solving algorithm overcomes the diculties in linearisation and gets rid of the inuence of initial value. The strategy is applied to an actual case and is simulated based on real data. Simulation results show that the proposed model has great peak-shaving effects, and can effectively bring more profit to the power-retailing companies while reducing electricity bills of customers.
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