Optimal purchasing strategy for inter-provincial renewable energy dealers under considering electricity purchasing risk

With the implementation of China's renewable portfolio standard(RPS), the positive externalities of renewable energy will be fully reflected. And inter-provincial renewable energy transactions will become an important way for provinces without sufficient renewable energy output to complete the assessment of consumption responsibility. The key issue is that inter-provincial renewable energy dealers can act as agents for market entities in the province to purchase renewable energy from other provinces. Therefore, based on the two-level electricity market and using the conditional value-at-risk(CVaR) method, this paper establishes a nonlinear bilevel optimization model that considers the risk of electricity purchase, and then introduces the risk aversion coefficient to transform the upper-level multi-objective problem into a single-objective problem, using Karush-Kuhn-Tucker(KKT) conditions and Lagrange duality theory to convert the above bilevel nonlinear problem into a single-layer linear problem for solution. The case studies show the effectiveness of the model and the reduction of market operating costs.