Proposing a new approach to the presence and trade of retailers in economic contracts of the electricity market based on interval optimization and customer participation in energy consumption optimization

Document Type : Research Paper

Authors

1 PhD Candidate- Department of Electrical Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Associate Professor - Department of Electrical Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran

3 Assistant Professor - Department of Electrical Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran

4 Associate Professor - Department of Electrical Engineering, , Science and Research Branch, Islamic Azad University, Tehran, Iran

Abstract

The retail electricity market is the intermediary between end-user customer and the wholesale market to supply customers’ energy. One of the basic tools in interaction between the retailer and the end-user customer is use of demand response programs. In this research, a business-economic model with the aim of maximum interaction between retailer and other electricity market players based on interval optimization and demand response programs is proposed to achieve an optimal decision of retailer in bilateral contracts and the pool electricity market. This proposed model calculates the retailer's profit before and after the implementation of appropriate demand response program and ultimately maximizes the difference between these two values. The results show that by using price-based demand response programs and price elasticity of each customer, maximum participation of customer in reducing peak load of the power grid can be achieved. On the other hand, based on proper modeling of uncertainties such as price elasticity and pool electricity market prices, the retailer's profit will increase with a suitable level of risk. For retailer profit, it can be concluded that based on application of fuzzy and epsilon constraint method, determining an optimal pareto points and retailer profit maximization will occur in real time pricing tariff compared to time of use pricing tariff . From the maximum interaction point of view between the retailer and the end-user customer in the electricity market based on the current research, the preferred policy is the policy of using intelligent methods of price-based demand response programs.

Keywords

References

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new economy and trad
Volume 16, Issue 4
March 2022
Pages 3-40

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History

  • Receive Date: 23 October 2021
  • Revise Date: 14 December 2021
  • Accept Date: 13 January 2022

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