Abstract

Under the background of implementing renewable portfolio standards and the ever-improving tradable green certificate scheme, the increasingly environmentally-friendly preference of power users is leading to changes in electricity demand, which, in turn, is driving changes in the decision-making behaviors of various actors in the power supply chain. Based on this, with the goal of pursuing maximum profit, consumer-power-demand functions have been introduced with some consideration of the factors of consumer preference to establish an optimal profit model for each trading subject in non-cooperative states of the power supply chain, under the constraints of meeting renewable energy portfolio standards. Here, the optimal strategy of each trading subject is presented by adopting the reverse induction method. Furthermore, examples are used to analyze factors such as the influence of environmental protection preferences, quota ratios, price substitutions, and market demand as well as the optimal profit of each trading subject in view of providing a reference for the decision-making in the power supply chain trading subjects.

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