Research On Demand Response Strategy Of Retail Companies Under The Background Of Reform Of Retail Market

Electricity retail companies are responsible for providing electricity to contracted consumers.There are three common methods of providing energy by retailer and sell it at a fixed retail price to their consumers:from wholesale electricity markets,to be contracted with distributed generators or forward contracts.Retailers use various strategies to reduce their potential financial losses and risks caused by uncertainties of wholesale market and electrical load.Thesis includes the investigation of retailer’s strategic behavior with implementing forward contracts,distributed energy sources,and demand response programs in order to increase its profit and reduce risk at the lowest possible level of retail prices.The resulted model of retailer’s decision-making problem is proposed as a bi-level optimization problem.The upper-level problem includes two main characteristics:profit and risk.The lower-level,called as the follower’s problem,from the consumer side includes the implementation of demand response program incorporated with dynamic pricing approach.The mathematical models with certain number of constrains for each component for both upper and lower levels of optimization problem have been developed.The decision-making retailer’s problem with implementing demand response under dynamic pricing approach has also been investigated in this thesis.For verifying the effectiveness of the proposed model,four cases for retailer’s problem are considered and obtained data of retailer’s profit and costs for each case have been compared and analyzed.The results of the simulation for four different cases show that giving a retailer more opportunities to buy the necessary power to its customers and increasing its flexibility in purchasing energy on the spot electricity market,reduces the risk of retailers and increases their profit.The effectiveness of implementing the demand response program has been shown and proven in this research.Furthermore,according to the obtained results of numerical calculations there is an opportunity to reduce average retail prices,under demand response program.Thus,it provides the most profitable solution for both retailer and its consumers...