Research On Return-risk Of Power Purchasing And Selling For REPs In The Electricity Retail Market

In electricity retail market, aimed at different trade modes and trade varieties, the RetailElectric Providers generally make the corresponding strategy of power purchasing portfolio,and sell power to meet the needs of consumers by signing different kinds of electricity retailcontracts, they hope to maximize profits. Because of the fluctuation of spot price and theuncertainties of load, The REPs encounter with some extent of purchasing and selling powerrisk. If the REPs choose different combinations of electric power purchase and supplycontracts, they can obtain different profits and face the different risks. Therefore, For REPs theproblem to be settled urgently is that how to find the optimal combination of electric powerpurchase and supply contracts in the markets to obtain the highest profits and lower the risk toa certain level. Firstly, the paper introduces some experiences of electricity retail marketsabroad, Secondly, by utilizing the CVaR theory, the profit mean-CVaR mathematical modelfor the REPs is established. Meanwhile the different elasticities of demand price forconsumers are considered in the model. In the end, one simulation based on the mean-CVaRmathematical model for the REPs who face different demand price elasticity consumers iscarried out and analysed. The result indicates that, under a certain risk, the model can providesREPs with the optimal decision-making support for the REPs.