An Algorithm for Electricity Pricing Considering Competition Among Energy Suppliers

Gholipour, Faeze | 2019

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 52966 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Rafiee, Majid; Najafi, Mehdi
  7. Abstract:
  8. In this study, a smart grid algorithm based on pricing and by considering a model in the electricity market is presenting, which is focused on reducing the cost of production for the supplier as well as increase the utility for the electricity consumer. The algorithm has been also modeling by considering multiple suppliers. The model has been designing by taking the home subscribers in to account and to increase their social welfare. The difference between the following developing model compared to the other ones, which are presented so far, is the consideration of the competition between suppliers and the real-time pricing conditions. In fact, in this model, the price of electricity has been determined based on the three parameters including: each supplier's production costs, the competitive market created between suppliers, and at last subscribers' welfare function, and thus result in to the balance between supply and demand. In the applied approach of this study, the supplier first determines its pricing strategies based on the production revenues and costs, then each supplier determines the final price by considering a non-cooperative competition, from its pricing strategies, and by setting the Nash equilibrium point, determines the final price, and finally the consumer selects one of the suppliers based on the offered prices and optimizes its welfare function to determine its amount and notify the supplier through the smart grid. In the next run, the supplier represents a new price to its subscribers based on the subscribers’ amount of consumption, production revenues and costs, and the subscriber re-announces their amount to the supplier. Likewise, the cycle continues, until the price to be fixed. It is worthful to note that the developing model in this study is closer to reality compare to the previous models, since it uses real-time pricing in a smart grid as well as considering multiple suppliers
  9. Keywords:
  10. Pricing ; Algorithm ; Competition ; Competitive Pricing ; Iran Power Industry ; Power Market

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