Bi-level Optimization Method for Bidding Strategy of Power Suppliers Considering Energy-Consuming Right

Energy-consuming right trading is an important way to control total energy consumption and improve energy utilization efficiency. With the promotion of the energy-consuming right market, power generation enterprises are not only influenced by the revenue of the electricity energy market, but also co...

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Main Authors: Guiyuan XUE, Yin WU, Xiaojun ZHU, Jian TAN, Hao MING
Format: Article
Language:zho
Published: State Grid Energy Research Institute 2023-05-01
Series:Zhongguo dianli
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Online Access:https://www.electricpower.com.cn/CN/10.11930/j.issn.1004-9649.202209087
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author Guiyuan XUE
Yin WU
Xiaojun ZHU
Jian TAN
Hao MING
author_facet Guiyuan XUE
Yin WU
Xiaojun ZHU
Jian TAN
Hao MING
author_sort Guiyuan XUE
collection DOAJ
description Energy-consuming right trading is an important way to control total energy consumption and improve energy utilization efficiency. With the promotion of the energy-consuming right market, power generation enterprises are not only influenced by the revenue of the electricity energy market, but also constrained by the total energy consumption when formulating their generation plans and bidding strategies. Aiming at the coupling mechanism of electricity market and energy-consuming right market, this paper proposes a bi-level optimization method for bidding strategy of power generation companies considering the constrains of energy-consuming right quotas according to the energy consumption intensity of different power generation companies. Firstly, the interaction between the electricity market and the energy-consuming right market is analyzed, and the relationship between power generation companies’ offers in the energy market and the energy-consuming right quota is constructed with the Stackelberg game and the Gounod model. Secondly, based on the constrains of energy-consuming right quotas and total energy consumption, a bi-level optimization model is established for bidding strategy of power generation companies considering the constrains of energy-consuming right quotas, in which the upper level takes maximizing power generation companies’ revenue as the objective, and the lower level consists of the model of electricity market clearing and energy-consuming right market clearing. The KKT (Karush-Kuhn-Tucker) condition is used to transform the bi-level optimization problem into a MPEC problem for solution. Finally, a case study is conducted, which shows that the proposed model can help to improve the revenue of power generation companies and encourage them to reduce energy consumption.
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spelling doaj-art-b41df0e5cb5f49469d622627452636412025-08-20T01:58:27ZzhoState Grid Energy Research InstituteZhongguo dianli1004-96492023-05-01565516110.11930/j.issn.1004-9649.202209087zgdl-56-05-xueguiyuanBi-level Optimization Method for Bidding Strategy of Power Suppliers Considering Energy-Consuming RightGuiyuan XUE0Yin WU1Xiaojun ZHU2Jian TAN3Hao MING4Economic Research Institute, State Grid Jiangsu Electric Power Co., Ltd., Nanjing 210000, ChinaEconomic Research Institute, State Grid Jiangsu Electric Power Co., Ltd., Nanjing 210000, ChinaEconomic Research Institute, State Grid Jiangsu Electric Power Co., Ltd., Nanjing 210000, ChinaEconomic Research Institute, State Grid Jiangsu Electric Power Co., Ltd., Nanjing 210000, ChinaDepartment of Electrical Engineering, Southeast University, Nanjing 210096, ChinaEnergy-consuming right trading is an important way to control total energy consumption and improve energy utilization efficiency. With the promotion of the energy-consuming right market, power generation enterprises are not only influenced by the revenue of the electricity energy market, but also constrained by the total energy consumption when formulating their generation plans and bidding strategies. Aiming at the coupling mechanism of electricity market and energy-consuming right market, this paper proposes a bi-level optimization method for bidding strategy of power generation companies considering the constrains of energy-consuming right quotas according to the energy consumption intensity of different power generation companies. Firstly, the interaction between the electricity market and the energy-consuming right market is analyzed, and the relationship between power generation companies’ offers in the energy market and the energy-consuming right quota is constructed with the Stackelberg game and the Gounod model. Secondly, based on the constrains of energy-consuming right quotas and total energy consumption, a bi-level optimization model is established for bidding strategy of power generation companies considering the constrains of energy-consuming right quotas, in which the upper level takes maximizing power generation companies’ revenue as the objective, and the lower level consists of the model of electricity market clearing and energy-consuming right market clearing. The KKT (Karush-Kuhn-Tucker) condition is used to transform the bi-level optimization problem into a MPEC problem for solution. Finally, a case study is conducted, which shows that the proposed model can help to improve the revenue of power generation companies and encourage them to reduce energy consumption.https://www.electricpower.com.cn/CN/10.11930/j.issn.1004-9649.202209087bidding strategybi-level optimizationenergy-consuming right tradingmpecelectricity market
spellingShingle Guiyuan XUE
Yin WU
Xiaojun ZHU
Jian TAN
Hao MING
Bi-level Optimization Method for Bidding Strategy of Power Suppliers Considering Energy-Consuming Right
Zhongguo dianli
bidding strategy
bi-level optimization
energy-consuming right trading
mpec
electricity market
title Bi-level Optimization Method for Bidding Strategy of Power Suppliers Considering Energy-Consuming Right
title_full Bi-level Optimization Method for Bidding Strategy of Power Suppliers Considering Energy-Consuming Right
title_fullStr Bi-level Optimization Method for Bidding Strategy of Power Suppliers Considering Energy-Consuming Right
title_full_unstemmed Bi-level Optimization Method for Bidding Strategy of Power Suppliers Considering Energy-Consuming Right
title_short Bi-level Optimization Method for Bidding Strategy of Power Suppliers Considering Energy-Consuming Right
title_sort bi level optimization method for bidding strategy of power suppliers considering energy consuming right
topic bidding strategy
bi-level optimization
energy-consuming right trading
mpec
electricity market
url https://www.electricpower.com.cn/CN/10.11930/j.issn.1004-9649.202209087
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