Electricity price decision-making method of electricity selling company based on multi-objective optimization and Min-Max Regret Theory

Abstract

Abstract In the electricity selling market, the long-term goal of electricity selling companies is to maximize the revenue, but the strategies adopted in the short term have been different. Some electricity selling companies pay more attention to the revenue, while some electricity selling companies tend to reduce the sales price so as to agent more electricity. Based on the mixed integer programming (MIP) formula, this paper proposes a multi-objective mathematical programming (MMP) model, which considers maximizing the retailer’s profit and minimizing the sales price to customers. The Pareto optimal solution is generated by the normal boundary intersection method. At the same time, considering the risk of electricity selling market faced by electricity selling companies, we use the theory of maximum and minimum regret to evaluate the risk of electricity selling companies in the decision-making of volume and price, and find the optimal solution of risk. Finally, through case analysis, it is proved that through reasonable electricity quantity and price decision, the seller can find the optimal decision to balance the two risks of market price fluctuation and user load fluctuation