Optimal Trading Strategies For Electricity Retailers Considering Demand Response

The publication of “No.9 Document” in March 2015 and the “Basic Rules for Medium-and Long-Term Power Trading(Interim)” in December 2016 made the electricity market-oriented,especially the marketization of the power selling side has become the major development trend of China's power industry in the future,and will bring unprecedented opportunities and challenges to the operation of electricity retailers in a market-oriented environment.From the perspective of the market-oriented nature of the power-selling side,it is clear that cultivating diversified and healthy power sales entities and fully liberalizing the power purchase options at the user side are the key to successfully promoting the competitive power market,which also mark the important transformation of the electricity retailers from the "supporting role" to the "protagonist" of the power system.Since the sale of the power supply side,nearly 7,000 electricity retailers have mushroomed in succession.However,factors such as fierce market share,single-sales business,lack of stickiness of customers and severe power assessment have led to the fact that the vast majority of electricity retailers have not carried out substantive operational transactions.Based on the above analysis,this paper first reviews the research status of the electricity retailers and DR technology to participate in the electricity market at home and abroad under the background of market-oriented reform.It is discussed that DR technology can become an ideal pointcut for the development of China's electricity retailers.The second chapter analyzes the diversified development,operation mode and power market trading framework of the development of retailers under the market opening environment,and discusses the influence of the power deviation on the operation income of electricity retailers under the bias assessment mechanism.The third chapter,aiming at the challenges facing the healthy development of the electricity retailers,designed the DR optimal transaction scheme which includes the interruptible load and demand buyback.In the fourth chapter,the optimal trading strategies and profitmodel of the DR are proposed,and compares it with the profit model of the conventional trading strategies through a simulation example.The results show that the optimized transaction strategies considering DR can effectively avoid the risk of biased power assessment,and bring a considerable amount of electricity revenue to customers,which helps to achieve win-win situation for both the risk sharing and benefit sharing between the retailers and customers.On the basis of the fourth chapter,the fifth chapter puts forward a comprehensive trading strategies that considers DR compensation cost and deviation assessment cost,and builds a profit model of multi-objective combinatorial optimization.Finally,by comparing the four trading strategies under different profit models through examples,the simulation results show that using the optimization algorithm to realize the optimal trading strategies of DR scheme compensation cost and deviation assessment cost can effectively avoid the risk of overcompensation caused by the fact that the electricity retailers want to eliminate the deviation,and it is also can be more conducive for the retailers to properly absorb the deviation and operate the transactions with healthy development.