Wind Power Pricing Game Strategy under the China’s Market Trading Mechanism

Fugui Dong, Xiaohui Ding and Lei Shi
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Fugui Dong: School of Economics and Management, North China Electric Power University, BeiJing 102206, China
Xiaohui Ding: School of Economics and Management, North China Electric Power University, BeiJing 102206, China
Lei Shi: School of Economics and Management, North China Electric Power University, BeiJing 102206, China

Energies, 2019, vol. 12, issue 18, 1-17

Abstract: Wind power has become the main power generation method in China’s clean energy power generation because of its clean and high efficiency, as well as its high power utilization rate. The research on its pricing mechanism has also become the main research focus of the wind power industry. However, wind power pricing is still at the stage of price benchmarking and no market mechanism has been introduced in China. There are still much research on the pricing mechanism of wind power for us to study. In this paper, the Kernel method is used to distribute wind power income. On the basis of the distribution result, considering the contract execution risk of wind power, cooperative game theory and the Shapley value method are used to redistribute the revenue of wind power connected to power grid. Based on the characteristics of alliance members, ANP (Analytic Network Process) was used to modify the apportioned benefits to obtain the benefit distribution method that was more in line with the interest demands of members, and an example was analyzed. The wind power pricing model based on the cooperative game established in this paper can guarantee the smooth operation of the alliance, reach the pareto optimum, and improve the activity of the wind power market. It will effectively shorten the negotiation time, and reduce the transaction cost and the uncertainty of the wind power transaction.

Keywords: wind power pricing; kernel method; game strategy; market trading mechanism (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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