Strategy decision game approach of the combination generation system of wind and thermal power participating in the direct power purchase transaction of large consumer

Abstract The participation of thermal power in the direct power purchase transaction (DPPT) of large consumer (LC) reduces the ability of transmission to consume wind power. This article proposes a novel strategy decision game approach framework of the wind-thermal combined generation (W&T-CoGen) participating in the DPPT of LC, to promote the consumption of wind power under the background of Renewables Portfolio Standards (RPS). The game model, with the goal of maximizing the profit of W&T-CoGen and LC, is established based on dynamic non-cooperative game theory. A novel profit distribution method, considering the power generation cost, risk cost and the satisfaction of wind and thermal power generation, is specially designed based on Nash negotiation method. The reverse induction method is adopted to solve the Nash equilibrium of the proposed full-information dynamic game model. The feasibility and effectiveness of this framework is verified by specific example, which shows that the participation of W&T-CoGen in the DPPT of LC can increase profits of all participants, promote the consumption of wind power and improve the energy system flexibility. This novel framework provides a novel way to construct power market optimal model in the power system containing large scale wind power.