A Study of Electricity Market Trading Mechanism Considering Demand Response Mechanism and Peak Regulation Mechanism

Abstract

In order to guide the sellers and users to make reasonable peak regulation and ensure the stable and orderly power supply, a peak regulation mechanism based on incentive demand response and considering user behavior factors was proposed. This mechanism also considers the peak and off-peak power load, encourages users to transfer part of the demand electricity during the peak by guiding the sellers to formulate compensation standards, and considers the impact of user behavior factors on their own utility, and finally establishes a double-layer programming model between the sellers and users for analysis. Among them, the upper sellers aim to maximize their own profits, and the lower users aim to maximize the total utility. Through solving, the optimal pricing strategy, compensation standard and the optimal power consumption of users are obtained when the sellers adopt the peak load mechanism. The numerical simulation results show that the peak balancing mechanism can improve the profit and the total utility of users, and the profit can be improved by appropriately increasing the base value and compensation rate. The optimal power consumption of the user is not related to the jealousy coefficient and guilt coefficient of the user, but is related to the product of the dissatisfaction coefficient. In addition, the proposed peaking mechanism can effectively reduce the load of the power system during the peak period, guide users to adjust their own consumption habits and off-peak consumption, so as to ensure the stability of the power system.