Design of Green Electricity Pricing Mechanisms Considering Renewable Portfolio Standard and User Characteristics

The implementation of a renewable energy quota system enables a power sales company to meet the diverse electricity demands of its customers while also fulfilling the specified quota targets. The establishment of a scientific and rational green power pricing mechanism constitutes a crucial strategy for enhancing profitability and strengthening competitiveness. To achieve this objective, this study first analyzes the differentiated demand for electricity products of different types of users and constructs the utility and benefit functions to represent users’ purchases of different combinations of electricity products. Subsequently, based on the users' utility function, it takes into account the requirements of the quota system and the users' behavior of electricity consumption, and establishes a differentiated green power price model with the goal of maximizing the profit. The model comprises three types of pricing mechanisms: tiered, time-of-use, and fixed-rate, thereby offering differentiated package services. Finally, to stimulate electricity demand and increase market share, an electricity price discount model is developed on the basis of the aforementioned three pricing mechanisms. This model is designed according to the price elasticity of electricity demand across different users, thereby further improving the profit of the electricity sales company. The results indicate that the proposed differentiated green electricity pricing mechanism can effectively enhance the profitability of the electricity sales company, bolster its competitiveness and that of renewable energy, as well as promote the consumption of renewable energy.