Abstract
An electricity supply chain game model composed of electricity generation enterprise and electricity retailer enterprise is constructed to evaluate the impact of service quality and peak-valley pricing on electricity supply chain coordination mechanism. Decisions on electricity service quality and peak-valley pricing are studied. Following this, the contract coordination under the electricity supply chain is discussed. Based on the game framework, the main research results are as follows. First, the centralized system provides a lower peak-valley price and higher electricity service quality, electricity demand, and supply chain’s profit compared with the decentralized system. Second, with the service quality sensitivity coefficient, the electricity service quality, electricity price, and electricity demand increase, increasing the profit. Third, with the electricity service quality cost coefficient, the electricity service quality, electricity price, and electricity demand decrease, reducing the profit. Fourth, revenue sharing and an electricity service quality investment cost-sharing contract could achieve the coordination of the supply chain.
Highlights
Since the reform of the electricity system, the business model of China’s electricity market has undergone great changes, from the original integrated salesThis provisional PDF is the accepted version
We set up a portfolio contract composed of electricity service quality investment cost-sharing and revenue sharing(γ, θ), which was implemented into the electricity supply chain
Many papers have studied the problems of service quality decision-making and contract coordination of supply chain enterprises, there is a lack of research considering electricity peak-valley pricing in the electricity market
Summary
Since the reform of the electricity system, the business model of China’s electricity market has undergone great changes, from the original integrated sales. In the sale separation model, electricity generation enterprises have electricity generation equipment and related assets, which could carry out electricity production activities. It analyzes the research on peak-valley pricing and service quality decision-making under the decentralized and centralized systems and designs corresponding contracts to coordinate the electricity supply chain, further enriching the electricity market research. It compares the advantages and disadvantages of centralized and decentralized systems. It was determined that the centralized system would provide a lower peak-valley price, higher electricity service quality, electricity demand, and supply chain profit. These conclusions are helpful for the operation of the electricity market
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