Day-Ahead Trading Mechanism of Multi-Subject Electricity-Flexible Resources on Demand-Side Based on Nash Negotiation

SHI Wenjie, LI Huaqiang, CHEN Yipeng, WANG Ziyao, GAO Luyao, ZANG Tianlei

Electric Power Construction ›› 2025, Vol. 46 ›› Issue (9) : 174-189.

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Electric Power Construction ›› 2025, Vol. 46 ›› Issue (9) : 174-189. DOI: 10.12204/j.issn.1000-7229.2025.09.014
Power Economics

Day-Ahead Trading Mechanism of Multi-Subject Electricity-Flexible Resources on Demand-Side Based on Nash Negotiation

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Abstract

[Objective] With the large-scale integration of distributed wind power on the demand side, power systems are placing an increasing demand on diversified and flexible demand-side resources. However, these resources are typically small in capacity and geographically dispersed, making it difficult to utilize them effectively through existing market mechanisms. [Methods] To address this issue, this study proposes a day-ahead combined electricity-flexible resource market trading mechanism based on the Nash negotiation model for typical demand-side resources. First, in the electricity-trading stage, each market participant determines their initial electricity-trading plan using a Nash negotiation model. Based on the supply-demand balance of flexible resources, we then assess whether flexibility trading is necessary. In the flexibility trading stage, bidding quantity and pricing principles for flexibility resources are proposed, and the corresponding trading plans are derived using the Nash negotiation model. Finally, considering the capacity-coupling relationship between electricity and flexible resources, electricity trading plans are updated to form the final combined market trading schedule. [Results] A case study of a market involving multiple types of demand-side resources the proposed mechanism effectively enhanced and coordinated the benefits for multiple market participants. It achieved a reasonable allocation of market benefits after flexible resources are introduced and provided a more rational pricing mechanism for flexible resources than conventional methods. [Conclusions] The proposed day-ahead combined electricity-flexible resources market trading mechanism based on Nash negotiation effectively addresses the increased flexibility demands caused by the integration of distributed wind power, as well as the trading challenges posed by the small capacity and scattered distribution of demand-side flexible resources. It also increases the enthusiasm of demand-side resources to participate in the market and offers theoretical support for the market-oriented development of flexible resources.

Key words

flexible resources / demand-side market / Nash negotiation / combined market

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SHI Wenjie , LI Huaqiang , CHEN Yipeng , et al . Day-Ahead Trading Mechanism of Multi-Subject Electricity-Flexible Resources on Demand-Side Based on Nash Negotiation[J]. Electric Power Construction. 2025, 46(9): 174-189 https://doi.org/10.12204/j.issn.1000-7229.2025.09.014

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Funding

the National Natural Science Foundation of China(52377115)
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