Propose A model to maximize the Retailer Profit in Electricity Market Contracts based on Demand Response and Price Elasticity While Calculating the Optimal Value of the Risk Limitation

As the power system restructured, new entities emerged in the electricity market, including retail electricity companies. These entities purchase electricity from the wholesale market and sell it to consumers at competitive pricing rate. With the intermediary role of these entities, it is important to adopt a proper strategy in dealing with supply and demand side because this proper strategy has a significant impact on profit or loss of the retailer. This paper presents a model to maximize the retailer profit while calculating the optimal risk limitation based on bilateral contracts, pool market, customer’s behavior and price elasticity of demand. The proposed model in the form of optimization problem solved as a nonlinear programming with SNOPT solver of GAMS software. The results of applying the proposed model show the accuracy of the results and maximize the retailer's profit in comparison with the basic model.