Study on profits of power supply chain under the stochastic demand

Under the stochastic demand, power supply chain of master-slave mode and trade union mode consisting of power suppliers and the electricity retailers are modeled and analyzed, and the latter mode is proved to gain higher overall profits. Meanwhile, in order to solve the problem of profit maximization and energy-saving, an optimization algorithm for unit commitment is presented. In addition, an approach based on incentive compatibility theory is proposed for profit allocation among the supply chain participants. Finally, the methods are verified by case examples, and the rules of the power supply chain with respect to the optimal electricity price, quantity and the corresponding maximum profits under different stochastic demand are analyzed.