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Keywords

electricity market, demand response, risk aversion

Abstract

The proportion of renewable energy in the supply side of the electricity market is gradually expanding, whilst its supply uncertainty increases the risk of electricity market trading. Under the background, an integrated trading strategy is proposed considering the day?ahead electricity price and supply uncertainty. Firstly, renewable energy aggregators utilize the demand response to deal with the uncertainty of electricity production. Then, they make a contract with demand response operators by comprehensively considering the contractual settlement price and activation charge of demand response. After that, the power is transferred according to demand. The cost of demand response switching to different times is decided by the contracted power, no need to consider when and where they will be used. Secondly, the operator participates in day?ahead market transactions through non?contractual demand response and further increases its revenue. Finally, the conditional value?at?risk (CVaR) by assessing expected cost volatility. Thereby, the risk aversion is incorporated into the decision model to avoid overly conservative trading scenarios. In the end, the proposed decision method is evaluated in a test system to validate the effectiveness of the method. It is shown that the proposed method can increase the expected returns of different market participants while reducing the associated risks.

DOI

10.19781/j.issn.1673-9140.2023.01.004

First Page

27

Last Page

34

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