Author(s)

Bin Ye, Yu Chen, Liuzhu Zhu, Xijun Ren and Xiaowei Zhang

Corresponding Author

Bin Ye

ABSTRACT

The Operational Strategy of electricity distributors and retailers is affected by government policy, load prediction and power supply reliability under the background of opening incremental distribution network. This paper puts forward the power supply reliability evaluation model of the distribution network based on fuzzy set theory. The electricity purchase and sale strategy model of electricity distributors and retailers considering demand response is proposed. Then, a two-stage optimization model of electricity purchase and sale strategy considering risk is established. The first stage is aimed at minimizing the main the risk cost of electricity purchase and sale, expecting profit and power supply reliability as constraints, and making decisions on the purchase of electricity. The second stage analyzes the decision of the electricity purchase strategy considering the feasibility of the inner optimization results and the investment preference of the social capital. The simulation results show that the interruptible load can help reduce the risk of power supply reliability after considering the demand response and different purchasing power sources and risk preferences will affect the expected profit of electricity distributors and retailers.

KEYWORDS

Incremental Distribution Network Business Liberalization, Electricity Distributors and Retailers, Electricity Purchase and Sale Strategy, Conditional Value at Risk (CVaR), Demand Response