Open AccessZ‐number‐based negotiation model for determining two‐part transmission tariffs of cross‐regional transmission projects
Author(s) -
Zou Bo,
Zhou Ying,
Hu Jiahua,
Wen Fushuan,
Dong ZhaoYang,
Zheng Yu,
Zhang Rui
Publication year - 2017
Publication title -
iet generation, transmission and distribution
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.92
H-Index - 110
eISSN - 1751-8695
pISSN - 1751-8687
DOI - 10.1049/iet-gtd.2016.1742
Subject(s) - cvar , negotiation , transmission (telecommunications) , constraint (computer aided design) , computer science , power transmission , operations research , electricity , value (mathematics) , economics , mathematical optimization , microeconomics , econometrics , expected shortfall , environmental economics , business , power (physics) , risk management , engineering , mathematics , finance , telecommunications , mechanical engineering , physics , electrical engineering , quantum mechanics , machine learning , political science , law
For cross‐regional transmission projects, the two‐part transmission pricing mechanism is suggested so as to promote the sustainable development of cross‐regional electricity trading. In the two‐part transmission pricing mechanism, appropriately determining the capacity charging ratio (CCR) is an important issue not well solved. Given this background, a Z‐number‐based risk‐minimised negotiation model is developed for a transmission company and a power purchaser to achieve an agreeable CCR under incomplete information. The uncertainty distribution of the future annual electricity transmission quantity is first estimated by the Z‐number‐based multiple Z‐valuations; and then, the benefit and risk loss measured by the well‐established conditional value at risk (CVaR) are analysed for the participating two parties. Subsequently, the negotiation model where each negotiator is to minimise its risk loss under a given lowest acceptable benefit constraint and the estimations of the opponent's risk tolerance and negotiation strategy is presented to determine the optimal offer. Finally, the ± 500 kV Xiluodu−Guangdong direct current (DC) transmission project in the southern region of China is employed to demonstrate the basic characteristics of the proposed model.