Electricity Price of Hybrid Power System and Decision Making of Renewable Energy Investment Capacity

Xie Jiaping (), Zhang Weisi (), Xia Yu (), Liang Ling () and Kong Lingcheng ()
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Xie Jiaping: School of International Business Administration, Shanghai University of Finance and Economics, Shanghai200433, China
Zhang Weisi: School of International Business Administration, Shanghai University of Finance and Economics, Shanghai200433, China
Xia Yu: School of International Business Administration, Shanghai University of Finance and Economics, Shanghai200433, China
Liang Ling: Tourism and Event Management School, Shanghai University of International Business and Economics, Shanghai201620, China
Kong Lingcheng: Business School, East China University of Science and Technology, Shanghai200237, China

Journal of Systems Science and Information, 2018, vol. 6, issue 3, 193-213

Abstract: In the existing electricity market, the traditional power suppliers and renewable energy generators coexist in the power supply side. In the power supply side, renewable energy generators generate power by wind and other natural conditions, leading renewable energy output a certain randomness. However, the low marginal generating cost and the reduction of carbon emissions, and thus brings a certain advantage for renewable energy compared to alternative energy. Electricity, as a special commodity, stable and adequate power supply is a necessary guarantee for economic and social development. Power shortage situation is not allowed in the power system, and the extra power needs to be handled for the purpose of safety. In this paper, the hybrid power generated by renewable energy generators and traditional energy generators is used as power supply, and then the electricity market sells hybrid power to electricity consumers, the hybrid power system determines the optimal daytime price, nighttime price, and the optimal installed capacity of the renewable energy suppliers. We find that the installed capacity of renewable energy increases first and then decreases with the increase of the price sensitivity coefficient of traditional energy supply. Electricity demand is negatively related to electricity price in the current period, and is positively related to price in the other period. The average price of day and night is only related to the total potential demand of day and night and the total generation probability of renewable energy. The price difference between daytime and nighttime is positively related to potential electricity demand, and negatively related to the sensitivity coefficient of electricity price.

Keywords: hybrid power generation; carbon emission reduction; power handling cost; electricity price; installed capacity (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:jossai:v:6:y:2018:i:3:p:193-213:n:1

DOI: 10.21078/JSSI-2018-193-21

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