Residential electricity package model considering load difference penalty in China

Abstract

The increasing load difference between peak and off-peak seasons has led to the unstable operation of China’s power systems in recent years. In addition, the current electricity package structure system of China, which is gradually liberalizing its electricity market, remains imperfect. This paper establishes a model of residential electricity packages that considers load difference penalty during peak and off-peak seasons. First, consumers’ utility of different packages is established and thus the optimal is determined by maximizing the utility function. Then, a mathematical model focusing on the minimization of load difference of retail electricity packages during peak and off-peak seasons is established. We thus design a particle-swarm based algorithm to solve the problem. Through simulation results of several numerical examples, we demonstrate that the profit of retailer is increased by 37.35% and Load difference during peak and off-peak seasons is reduced by 78.01%, improving the power demand curve of users and the operation efficiency of power systems.