The pricing method for abandoned wind power contract between wind power enterprises and desalination plants in bilateral transactions

Abstract

In Northeast China’s electric power auxiliary service market, guiding interruptible load users to participate in bilateral transactions is an effective measure to ease the difficulty of grid peak regulation and improve the utilization rate of wind power. Aiming at the lack of theoretical guidance in the current bilateral transactions, this paper proposes a two-stage pricing (TSP) method. Firstly, the freshwater supply and demand balance model of the desalination plant is constructed. The upper-level optimization model of bilateral transaction for profit maximization of the desalination plant is constructed. Then, considering the profit distribution among transaction parties and constraints on wind power utilization, a low-level calculation model of wind power pricing is constructed. Finally, the TSP method is applied to the numerical analysis of bilateral transaction between a desalination plant and a wind power company. The TSP method jointly optimizes the dispatching scheme between the variable speed pump and the water storage tank of the desalination plant. Under the constraints of reasonable profit distribution and wind power utilization, the transaction price finally converges to a range acceptable to both parties. The TSP method can effectively improve the utilization rate of wind power and optimize the flexibility of energy utilization. • A detailed mixed-integer linear programming (MILP) model is developed for desalination plants. • A model for seawater desalination plants to participate in bilateral trading markets is proposed. • A TSP method for calculating the price of bilateral transactions is proposed. • The TSP method can effectively optimize the flexibility of energy utilization.