NDLI: Investigating the effects of demand flexibility on electricity retailers’ business through a tri-level optimisation model

Content Provider	IET Digital Library
Author	Qiu, Dawei Papadaskalopoulos, Dimitrios Ye, Yujian Strbac, Goran
Abstract	The investigation of the effects of demand flexibility on the pricing strategies and the profits of electricity retailers has recently emerged as a highly interesting research area. However, the state-of-the-art, bi-level optimisation modelling approach makes the unrealistic assumption that retailers treat wholesale market prices as exogenous, fixed parameters. This study proposes a tri-level optimisation model, which drops this assumption and represents the wholesale market clearing process endogenously, thus capturing the realistic implications of a retailer's pricing strategies and the resulting demand response on the wholesale market prices. The scope of the examined case studies is three-fold. First of all, they demonstrate the interactions between the retailer, the flexible consumers and the wholesale market and analyse the fundamental effects of the consumers’ time-shifting flexibility on the retailer's revenue from the consumers, its cost in the wholesale market and its overall profit. Furthermore, they analyse how these effects of demand flexibility depend on the retailer's relative size in the market and the strictness of the regulatory framework. Finally, they highlight the added value of the proposed tri-level model by comparing its outcomes against the state-of-the-art bi-level modelling approach.
Starting Page	1739
Ending Page	1750
Page Count	12
ISSN	17518687
Volume Number	14
e-ISSN	17518695
Issue Number	Issue 9, May (2020)
Alternate Webpage(s)	https://digital-library.theiet.org/content/journals/iet-gtd/14/9
Alternate Webpage(s)	https://digital-library.theiet.org/content/journals/10.1049/iet-gtd.2019.1433
Journal	IET Generation, Transmission & Distribution
Publisher Date	2020-01-29
Access Restriction	Open
Rights Holder	© The Institution of Engineering and Technology
Subject Keyword	Bi-level Optimisation Modelling Approach Demand Flexibility Demand Response Demand Side Management Electricity Retailers Flexible Consumers Fundamental Effect Optimisation Optimisation Technique Power Market Power System Economics Power System Managemen Power System Operation Pricing Pricing Strategy Profit Retailing State-of-the-art Bi-level Modelling Approach Tri-level Model Tri-level Optimisation Model Unrealistic Assumption Wholesale Market Clearing Process Wholesale Market Prices
Content Type	Text
Resource Type	Article
Subject	Control and Systems Engineering Energy Engineering and Power Technology Electrical and Electronic Engineering

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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