Abstract
For cross-regional transmission projects, the two-part transmission pricing mechanism is suggested so as to promote the sustainable development of cross-regional electricity trading. In the two-part transmission pricing mechanism, appropriately determining the capacity charging ratio (CCR) is an important issue not well solved. Given this background, a Z-number-based risk-minimised negotiation model is developed for a transmission company and a power purchaser to achieve an agreeable CCR under incomplete information. The uncertainty distribution of the future annual electricity transmission quantity is first estimated by the Z-number-based multiple Z-valuations; and then, the benefit and risk loss measured by the well-established conditional value at risk (CVaR) are analysed for the participating two parties. Subsequently, the negotiation model where each negotiator is to minimise its risk loss under a given lowest acceptable benefit constraint and the estimations of the opponent's risk tolerance and negotiation strategy is presented to determine the optimal offer. Finally, the ± 500 kV Xiluodu−Guangdong direct current (DC) transmission project in the southern region of China is employed to demonstrate the basic characteristics of the proposed model.
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