Modeling Bidding Behavior of Electricity Retailer Considering Profit-Sharing-Terms in End-User Contract in China

For electricity retailers, their profits are highly dependent on their contracts made with the end-users, which seriously affect their bidding behaviors in the electricity market. In China, one of the most terms in the contracts made between the electricity retailers and the end-users are the profit-sharing-terms. This paper mainly considers the influence of profit-sharing-terms on the bidding behaviors of electricity retailers. Based on the investigation of the existing profit-sharing-terms in multiple electricity contracts in the real electricity market in China, we conclude eight kinds of profit-sharing-terms. and model them mathematically. Then, these models are imbedded into a reinforcement learning intelligent bidding simulation system including the market clearing process. Based on the systematic simulation, this paper analyses the bidding strategies of the electricity retailers with different profit-sharing-terms, which reveals the bidding psychology of electricity retailers. Finally, a simulation example is built with MATLAB, which verify the effectiveness of the proposed model.