Research on the Optimal Pricing Strategy of Electricity Retail Companies Considering Demand Response
Electricity sales companies need to formulate strategic bidding and quotation plans to purchase sufficient electricity on the one hand,and on the other hand,they need to form reasonable retail electricity prices to attract consumers to use electricity rationally.However,due to the uncertainty of the electricity purchase price,electricity sales companies may bear the risk of loss of profits.To this end,this paper proposes a pricing strategy for electricity sales companies considering demand response.A master-slave game model is adopted to describe the coordinated decision-making process of electricity sales companies,and conditional value-at-risk is introduced to avoid the risk of loss caused by the uncertainty of spot market electricity prices.Combined with Karush-Kuhn-Tucker(KKT)conditions,the two-layer model is transformed into a single-layer linear programming problem for solving.The case analysis shows that the proposed model and method can effectively avoid the risk of price fluctuation and ensure the competitive income of the electricity retail company in the retail market.
uncertaintyretail electricity pricemaster-slave gameconditional value at risk