Title: Decision making for electricity retailers in fractile model from multiple markets with rational responses of consumers

Authors: Shinya Sekizaki; Ichiro Nishizaki; Tomohiro Hayashida

Addresses: Graduate School of Engineering, Hiroshima University, 1-4-1, Kagamiyama, Higashi-Hiroshima, Japan ' Graduate School of Engineering, Hiroshima University, 1-4-1, Kagamiyama, Higashi-Hiroshima, Japan ' Graduate School of Engineering, Hiroshima University, 1-4-1, Kagamiyama, Higashi-Hiroshima, Japan

Abstract: This paper presents a new decision-making model that enables a retailer to optimise a portfolio reflecting his or her risk attitude in the non-convex decision-making problem. In the proposed model, the responses of consumers to selling prices offered by the retailer are integrated with three types of electricity transactions. In our model, we deal with the three types of electricity transactions, i.e., forward contracts, day-ahead market transactions, and real-time market transactions, and consumers optimise the electricity consumption schedules in response to the time-of-use (TOU) selling prices offered by the retailer. In this paper, in order to examine behavior of the retailers with various risk attitudes effectively, we employ the fractile model that can find the preferred solution in the proposed non-convex decision-making model. Through the computational experiments, we demonstrate the validity of the proposed model for examining the retailer's actions in the deregulated electricity market.

Keywords: decision making; electricity retail market; demand response; Stackelberg game; bi-level programming problem.

DOI: 10.1504/IJETP.2020.107966

International Journal of Energy Technology and Policy, 2020 Vol.16 No.4, pp.413 - 432

Received: 22 Jan 2018
Accepted: 12 Feb 2019
Published online: 01 Jul 2020 *

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