Game-theoretic modeling of power supply chain coordination under demand variation in China: A case study of Guangdong Province

Entities in the power supply chain usually tend to cooperate with each other for higher profits. The inter mechanism between the entities and power supply chain is an urgent research subject. To consider the power supply chain and entities better, a extended model of bilateral contract mechanism is proposed in this paper. Utilizing a Stackelberg game, this paper studies dynamic coordination and strategic interactions between power plants, power retailers, and consumers in the electricity trading process under demand uncertainty. An improved coordination model is proposed to help entities get potential profits as well as improve the stability of the power supply. The model is applied to power trading data from Guangdong, China which imposes penalties for inaccuracies in demand variation. Simulations suggest the model's solution exhibits higher reliability and minimizes fines.