Investigating the investment strategy of electricity quality in the electricity supply chain considering peak-valley pricing policy

¹ College of Management Science, Chengdu University of Technology, Chengdu 610059, P.R. China
² School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P.R. China
³ Energy and Environment Carbon Neutrality Innovation Research Center, Chengdu 610059, P.R. China
⁴ National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing 400067, P.R. China

^* Corresponding author: mengyaoc93@126.com

Received: 5 November 2023
Accepted: 8 February 2025

Abstract

Several countries around the world undergo a lot of economic losses due to electricity quality problems every year. Electricity supply chain (ESC) enterprises can effectively reduce economic losses by investing in electricity quality (EQ). Considering the investment decision-making problem of EQ in the ESC and the characteristics of peak-valley pricing, corresponding models for EQ invested by electricity generators (EG) and electricity retailers (ER) were developed in this work. The following conclusions were obtained from this study: (1) The EQ and the electricity prices during peak and valley periods (PVP) as well as the electricity demand during PVPs decreased with the increase in the electricity quality investment cost coefficient (EQICC); (2) When the EQICC is low, the EQ input by the EG can provide lower electricity prices during PVP. On the contrary, when the EQICC is high, the EQ investment of the ER provides lower electricity prices during PVP. (3) ER investing in EQ can bring higher EQ and profits than EG.