Stackelberg Game of Electricity Retailer Based on Demand Response

With the formation of the market-oriented competition pattern on the electricity selling side, electricity retailers are always faced with huge risks caused by the uncertainty of electricity prices in the spot market. It is urgent to optimize the revenue risk to improve the market competitiveness of electricity retailers. As an important tool to deal with spot market risk, demand response has been increasingly widely used. This paper considers the electricity purchase of electricity retailers in the spot market and sells electricity to power consumers through the time-of-use price. On this basis, a Stackelberg game model between an electricity retailer and power consumers based on demand response is constructed. In order to solve the problem, the Archimedes optimization algorithm is adopted. The results of the cases demonstrate that the proposed model can achieve a win-win situation between electricity retailers and power consumers, which provides guidance for electricity retailers when making decisions.