AUTHORS: Mohammad Abolhasanpour, Amir Abolfazl Suratgar

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ABSTRACT: A volume discounting model in the micro-grid power market discussed in this paper. The Generator Companies’ (GenCo) discounting model and the special fares for Distribution Companies (DisCo) formulated. The concept of renewable energy intermittent electricity transmissions to certain storage devices in the distribution level presented as a novel contribution in the field. Considering the final unit price which GenCo proposes to Disco for different power consumption levels, GenCo tries to maximize its profit margin by controlling DisCos’ order behavior, in term of volumes per order, by using the discounting tool. Respectively DisCo tries to maximize its profit margin by considering the special fares offered by GenCo. In this model, the volume of electricity in the storage devises assumed to continuously drained over the time. The drained power volume assumed to be a fraction of stored power in the storage devices. This model formulated as a Stackelberg game between a micro-grid GenCo and DisCo considering renewable-energy concept as an artwork to reach an optimal discounting and pricing policy. This policy will maximize both parties’ profit margins per unit of time. Finally, the model credibility examined by using a numerical example to show benefits of the proposed formulation.

KEYWORDS: Power Market, Demand-side Management, Discount Policy, Micro-Grid, Renewable Energy Resources, Profit Margin, Stackelberg Game

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