Electricity Pricing with Continuous-time Commodity Model and Non-monotonic Load Curve

Under the “carbon peak and carbon neutrality” background, clean energy enters the market on a large scale, so it is very important to study the pricing theory of electricity. The bright spot of this paper is that the load curve is more practical. In the original version of electricity pricing theory based on continuous time commodity model, the load curve is supposed to be a monotonic function with time for simplicity of derivation, which is not realistic. To overcome this defect, load curves are supposed to be in shapes of a unimodal model and multimodal cases in this paper, which are more in conformity with the actual load curve in real-world power markets. Two study cases are used to demonstrate the rationality of the proposed models. These results together with the authors' previous work provide a complete pricing scheme for continuous-time electricity commodity model.