Abstract
Organizational model of the heat energy market on a unified heat supply organization is considered. An equilibrium mathematical model is proposed for the liberalized tariff setting conditions based on a microeconomic monopolistic market model. This mathematical model allows for taking into account energy production and transportation costs as part of a single economic criterion and to determine the supply and demand equilibrium for heat energy. The search for an optimal solution to the developed mathematical model of the unified heat supply organization is based on the univariate relaxation method with the subsequent use of methods of redundant design and simple iterative schemes. The developed mathematical model fully reflect the current “rules of the game” between heat energy producers and consumers and allow a maximum consideration for the interests of all participants of the heat supply process under physical and engineering constraints on heat energy sources and heat networks.
Highlights
There are more than 50 thousand heat markets in the Russian Federation [1] and all of them are controlled by natural monopolies
The unified heat supply organization produces the amount of heat that on the one hand would maximize its profit, given physical-technical constraints on heat sources and heat networks, and meet the demand for heat specified by the consumer, and on the other hand would correspond to the consumer wish to pay for this demand
The equilibrium achieved at point Q*, represents an optimal solution in terms of the heat volumes produced by the heat sources, equilibrium price of heat production and profit of the unified heat supply organization that corresponds to these values, provided the physical and technical constraints in the heating system are met, and demand equals supply at time τ 1 for the calculated ambient temperature
Summary
There are more than 50 thousand heat markets in the Russian Federation [1] and all of them are controlled by natural monopolies. The proposed model suggests the integration of all heating system functions, including heat generation, transportation and sale, to be performed within the unified heat supply organization With this heat supply model, the unified heat supply organization should become the owner of all the municipal assets including heat sources and distribution heat networks. Based on the forecasts of demand and optimal options of heating system expansion, the unified heat supply organization delivers heat (under medium-term and long-term contracts) to consumers at a price calculated as a sum of a price of heat source heat generation and a price of heat transportation from the heat source to the consumer In this case, the unified heat supply organization produces the amount of heat that on the one hand would maximize its profit, given physical-technical constraints on heat sources and heat networks, and meet the demand for heat specified by the consumer, and on the other hand would correspond to the consumer wish to pay for this demand. It is worthwhile to emphasize a classical microeconomic model of monopoly [4,5,6,7] among the most widely applied approaches to modeling of the medium–term (or long-term) forecasting of possible
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have