Pareto Improvement of Large Customer Direct Power-Purchase by Use of Multi-Objective Optimization

Large customer direct power-purchase(DPP) rises gradually in China with the development of power market which should bring risks to all participant as little as possible to avoid excessive and unnecessary market fluctuation. This paper proposes a multi-objective optimization model using Pareto improvement from the view of supervision institution which takes charge of design, supervision and management of power market. Direct power-purchase volume proportion, floating ratio of time-of-use(TOU) transmission price and grid-supplied price are chosen as control variables to formulate the problem. The model presented in this paper has two objective of economy and environment consideration with some constraints including network loss, emission, price, market power, and so on and the model can optimize the control variables without benefit loss of any participant. The essential of the problem is to utilize price elasticity matrix of large customer to adjust profit distribution and to achieve the social integrated benefit optimization. Some power plants and large customers are supposed to form a scenario, which is used to validate the effect of method.