Open Access

ARTICLE

Demand Responsive Market Decision-Makings and Electricity Pricing Scheme Design in Low-Carbon Energy System Environment

Hongming Yang^1,*, Qian Yu¹, Xiao Huang¹, Ben Niu², Min Qi³

1 School of Economics and Management, School of Electrical and Information Engineering, Hunan Provincial Engineering Research Center of Electric Transportation and Smart Distribution Network, International Joint Laboratory of Energy Internet Operation and Planning Based on Distributed Photovoltaic-Storage Energy of Ministry of Education, Changsha University of Science and Technology, Changsha, 410114, China
2 Zhangjiakou Power Supply Company, State Grid JiBei Electric Power Company Limited, Zhangjiakou, 075000, China
3 Zigong Power Supply Company, State Grid Sichuan Electric Power Company Limited, Zigong, 643002, China

* Corresponding Author: Hongming Yang. Email:

Energy Engineering 2021, 118(2), 285-301. https://doi.org/10.32604/EE.2021.013734

Received 18 August 2020; Accepted 12 October 2020; Issue published 23 December 2020

Abstract

The two-way interaction between smart grid and customers will continuously play an important role in enhancing the overall efficiency of the green and low-carbon electric power industry and properly accommodating intermittent renewable energy resources. Thus far, the existing electricity pricing mechanisms hardly match the technical properties of smart grid; neither can they facilitate increasing end users participating in the electricity market. In this paper, several relevant models and novel methods are proposed for pricing scheme design as well as to achieve optimal decision-makings for market participants, in which the mechanisms behind are compatible with demand response operation of end users in the smart grid. The electric vehicles and prosumers are jointly considered by complying with the technical constraints and intrinsic economic interests. Based on the demand response of controllable loads, the real-time pricing, rewarding pricing and insurance pricing methods are proposed for the retailers and their bidding decisions for the wholesale market are also presented to increase the penetration level of renewable energy. The proposed demand response oriented electricity pricing scheme can provide some useful operational references on the cooperative operation of controllable loads and renewable energy through the feasible retail and wholesale market pricing methods, and thereby enhancing the development of the low-carbon energy system.

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Keywords

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