IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v322y2025ics0360544225012691.html

A non-cooperative game theory-based time-of-use tariffs joint optimization mechanism considering synergy of multiple provincial power grids under regional coordinated development strategy

Author

Listed:
  • Lin, Fangsen
  • Wang, Peng
  • Ding, Yihong
  • Wu, Jiaqi
  • Cao, Yujie

Abstract

Under regional coordinated development strategy, there is a pressing need to enhance existing time-of-use (TOU) tariffs formulation mechanism to address the issue of how to jointly optimize TOU tariffs for the provinces in a region. This paper proposes a TOU tariffs joint optimization mechanism. Firstly, a division method for regional agents is developed. In this method, all regional agents are divided into conventional agents (CAs) and region stability facilitation agents (RSFAs). When setting TOU tariffs, each CA focuses on the conditions of its province, while each RSFA will contemplate the conditions of both its province and region. Under a RSFAs selection strategy, all agent models will formulate TOU tariffs jointly, and constitute a joint optimization model. Secondly, the model will further constitute a non-cooperative game solved using diagonalization method and particle swarm optimization with linearly decreasing inertia weight (DM-IWPSO) algorithm. Moreover, multi-objective problems constituted by CA and RSFA models are transformed into single-objective problems by introducing two new cost indices. Finally, the proposed mechanism is tested in Beijing-Tianjin-Tangshan power grid. The results indicate that the proposed mechanism maybe more conducive to maintaining the stability of the regional power grid and more beneficial for the implementation of regional coordinated development strategy.

Suggested Citation

  • Lin, Fangsen & Wang, Peng & Ding, Yihong & Wu, Jiaqi & Cao, Yujie, 2025. "A non-cooperative game theory-based time-of-use tariffs joint optimization mechanism considering synergy of multiple provincial power grids under regional coordinated development strategy," Energy, Elsevier, vol. 322(C).
    • Handle: RePEc:eee:energy:v:322:y:2025:i:c:s0360544225012691
    DOI: 10.1016/j.energy.2025.135627
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544225012691
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2025.135627?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Garashchuk, Anna & Castillo, Fernando Isla & Rivera, Pablo Podadera, 2023. "Economic cohesion and development of the European Union's regions and member states - A methodological proposal to measure and identify the degree of regional economic cohesion," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    2. Konak, Abdullah & Coit, David W. & Smith, Alice E., 2006. "Multi-objective optimization using genetic algorithms: A tutorial," Reliability Engineering and System Safety, Elsevier, vol. 91(9), pages 992-1007.
    3. Andrew J. Hinchberger & Mark R. Jacobsen & Christopher R. Knittel & James M. Sallee & Arthur A. van Benthem, 2024. "The Efficiency of Dynamic Electricity Prices," CESifo Working Paper Series 11355, CESifo.
    4. Kaur, Amrit Pal & Singh, Mukesh, 2023. "Time-of-Use tariff rates estimation for optimal demand-side management using electric vehicles," Energy, Elsevier, vol. 273(C).
    5. Zhan, Jinyan & Wang, Chao & Wang, Huihui & Zhang, Fan & Li, Zhihui, 2024. "Pathways to achieve carbon emission peak and carbon neutrality by 2060: A case study in the Beijing-Tianjin-Hebei region, China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    6. Zhuo, Chong & Luo, Kang & Song, Yaning & Dai, Ling & Liu, Yaobin, 2024. "Regional coordinated development and green transformation: Evidence from major national strategic zones," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1290-1307.
    7. Yang, So Young & Woo, JongRoul & Lee, Wonjong, 2024. "Assessing optimized time-of-use pricing for electric vehicle charging in deep vehicle-grid integration system," Energy Economics, Elsevier, vol. 138(C).
    8. Chen, Danling & Li, Yuying & Zhang, Chaozheng & Zhang, Yunlei & Hou, Jiao & Lin, Yaoben & Wu, Shiman & Lang, Yan & Hu, Wenbo, 2024. "Regional coordinated development policy as an instrument for alleviating land finance dependency: Evidence from the urban agglomeration development," Land Use Policy, Elsevier, vol. 143(C).
    9. Yan, Xing & Ozturk, Yusuf & Hu, Zechun & Song, Yonghua, 2018. "A review on price-driven residential demand response," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 411-419.
    10. Yang, Jie & Zhao, Boyuan & Ma, Kai & Zhong, Jiaqing & Xu, Wenya, 2024. "A carbon integrated energy pricing strategy based on non-cooperative game for energy hub in seaport energy system," Energy, Elsevier, vol. 309(C).
    11. Luo, Kang & Lee, Chien-Chiang & Zhuo, Chong, 2024. "A pathway to coordinated regional development: Energy utilization efficiency and green development - Evidence from China's major national strategic zones," Energy Economics, Elsevier, vol. 131(C).
    12. Andrew J. Hinchberger & Mark R. Jacobsen & Christopher R. Knittel & James M. Sallee & Arthur A. van Benthem, 2024. "The Efficiency of Dynamic Electricity Prices," NBER Working Papers 32995, National Bureau of Economic Research, Inc.
    13. Charwand, Mansour & Gitizadeh, Mohsen, 2018. "Optimal TOU tariff design using robust intuitionistic fuzzy divergence based thresholding," Energy, Elsevier, vol. 147(C), pages 655-662.
    14. Amiri-Pebdani, Sima & Alinaghian, Mahdi & Khosroshahi, Hossein, 2023. "A game theoretic approach for time-of-use pricing with considering renewable portfolio standard effects and investment in energy storage technologies under government interventions," Energy, Elsevier, vol. 282(C).
    15. Guo, Hongye & Chen, Qixin & Xia, Qing & Kang, Chongqing, 2018. "Market equilibrium analysis with high penetration of renewables and gas-fired generation: An empirical case of the Beijing-Tianjin-Tangshan power system," Applied Energy, Elsevier, vol. 227(C), pages 384-392.
    16. Gao, Hongjun & Zhao, Yinbo & He, Shuaijia & Liu, Junyong, 2023. "Demand response management of community integrated energy system: A multi-energy retail package perspective," Applied Energy, Elsevier, vol. 330(PA).
    17. Lu, Qing & Zhang, Yufeng, 2022. "A multi-objective optimization model considering users' satisfaction and multi-type demand response in dynamic electricity price," Energy, Elsevier, vol. 240(C).
    18. Shaker, Hamid & Zareipour, Hamidreza & Wood, David, 2016. "Impacts of large-scale wind and solar power integration on California׳s net electrical load," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 761-774.
    19. Zhou, Kaile & Wei, Shuyu & Yang, Shanlin, 2019. "Time-of-use pricing model based on power supply chain for user-side microgrid," Applied Energy, Elsevier, vol. 248(C), pages 35-43.
    20. Sun, Li & Pan, Bolin & Gu, Alun & Lu, Hui & Wang, Wei, 2018. "Energy–water nexus analysis in the Beijing–Tianjin–Hebei region: Case of electricity sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 27-34.
    21. Wang, Pengyu & Fang, Debin & Cao, GangCheng, 2022. "How social learning affects customer behavior under the implementation of TOU in the electricity retailing market," Energy Economics, Elsevier, vol. 106(C).
    22. Aydin, Mucahit & Bozatli, Oguzhan, 2023. "The effects of green innovation, environmental taxes, and financial development on renewable energy consumption in OECD countries," Energy, Elsevier, vol. 280(C).
    23. Wang, Weijun & Han, Yicen & Wang, Meng & He, Yan, 2023. "Research on fair residential critical peak price: Based on a price penalty mechanism for high-electricity consumers," Applied Energy, Elsevier, vol. 351(C).
    24. Abbas, Khizar & Butt, Khalid Manzoor & Xu, Deyi & Baz, Khan & Sheraz, Muhammad & Kharl, Sanwal Hussain, 2023. "Dynamic prognostic interaction between social development and energy consumption optimization: Evidence from european union member countries," Energy, Elsevier, vol. 278(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, He & Wang, Pengyu & Fang, Debin, 2024. "Differentiated pricing for the retail electricity provider optimizing demand response to renewable energy fluctuations," Energy Economics, Elsevier, vol. 136(C).
    2. Tsao, Yu-Chung & Thanh, Vo-Van & Lu, Jye-Chyi, 2022. "Efficiency of resilient three-part tariff pricing schemes in residential power markets," Energy, Elsevier, vol. 239(PD).
    3. Xu, Fangyuan & Zhu, Weidong & Wang, Yi Fei & Lai, Chun Sing & Yuan, Haoliang & Zhao, Yujia & Guo, Siming & Fu, Zhengxin, 2022. "A new deregulated demand response scheme for load over-shifting city in regulated power market," Applied Energy, Elsevier, vol. 311(C).
    4. Zhen, Cheng & Niu, Jide & Tian, Zhe & Lu, Yakai & Liang, Chuanzhi, 2025. "Risk-averse transactions optimization strategy for building users participating in incentive-based demand response programs," Applied Energy, Elsevier, vol. 380(C).
    5. Lee, Wonjong & Woo, JongRoul & Kim, Yong-gun & Koo, Yoonmo, 2024. "Vehicle-to-grid as a competitive alternative to energy storage in a renewable-dominant power system: An integrated approach considering both electric vehicle drivers' willingness and effectiveness," Energy, Elsevier, vol. 310(C).
    6. Lee, Wonjong & Koo, Yoonmo & Kim, Yong-gun, 2024. "Environmental time-of-use scheme: Strategic leveraging of financial and environmental incentives for greener electric vehicle charging," Energy, Elsevier, vol. 309(C).
    7. Wang, Weijun & Han, Yicen & Wang, Meng & He, Yan, 2023. "Research on fair residential critical peak price: Based on a price penalty mechanism for high-electricity consumers," Applied Energy, Elsevier, vol. 351(C).
    8. Chong Zhuo & Yaobin Liu & Ling Dai & Yuyang Deng, 2024. "Cultural, Economic, or Transport Link: Does Carbon Emissions Trading Promote “Good Neighbor” Carbon Emission Reduction?," Land, MDPI, vol. 13(11), pages 1-19, October.
    9. Gjorgievski, Vladimir Z. & Velkovski, Bodan & Markovski, Blagoja & Cundeva, Snezana & Markovska, Natasa, 2024. "Energy community demand-side flexibility: Energy storage and electricity tariff synergies," Energy, Elsevier, vol. 313(C).
    10. Gupta, Pankaj & Mittal, Garima & Mehlawat, Mukesh Kumar, 2013. "Expected value multiobjective portfolio rebalancing model with fuzzy parameters," Insurance: Mathematics and Economics, Elsevier, vol. 52(2), pages 190-203.
    11. Weifan Zhong & Lijing Du, 2023. "Predicting Traffic Casualties Using Support Vector Machines with Heuristic Algorithms: A Study Based on Collision Data of Urban Roads," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    12. Brockmann, Fabian & Guajardo, Mario, 2026. "Electric vehicle charging costs and power losses under the energy price crisis: shifting dynamics in Norway," Energy Economics, Elsevier, vol. 153(C).
    13. Li, Yapeng & Xiao, Qin & Gu, Jiayang, 2026. "Optimizing cruise ship space allocation for enhanced evacuation safety in early-stage design," Reliability Engineering and System Safety, Elsevier, vol. 266(PA).
    14. Haonan Chen & Xiaoning Cui & Zhi Li, 2025. "Research on the Impact of Digital-Realistic Integration to Promote Sustainable Development of Enterprises: Based on the Perspective of Technology Bias," SAGE Open, , vol. 15(2), pages 21582440251, April.
    15. Ziyu Li & Bangjun Wang, 2024. "A Bibliometric Analysis of Carbon Allowances in the Carbon Emissions Trading Market," Energies, MDPI, vol. 18(1), pages 1-18, December.
    16. Zhang, Yue & Zhang, Qi & Farnoosh, Arash & Chen, Siyuan & Li, Yan, 2019. "GIS-Based Multi-Objective Particle Swarm Optimization of charging stations for electric vehicles," Energy, Elsevier, vol. 169(C), pages 844-853.
    17. Huang, Zhilin & Li, Xiang & Chen, Jialing & Zhang, Dingfeng, 2024. "Does the Three-Year Action Plan for Winning the Blue Sky Defense Battle implementation enabling the high-quality development of regional energy? A quasi-natural experiment from China," Energy, Elsevier, vol. 312(C).
    18. Lee, Chien-Chiang & Qian, Anqi, 2024. "Regional differences, dynamic evolution, and obstacle factors of cultivated land ecological security in China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    19. Wang, Tonghe & Hua, Haochen & Shi, Tianying & Wang, Rui & Sun, Yizhong & Naidoo, Pathmanathan, 2024. "A bi-level dispatch optimization of multi-microgrid considering green electricity consumption willingness under renewable portfolio standard policy," Applied Energy, Elsevier, vol. 356(C).
    20. Wang, Han & Xiang, Youzhen & Liao, Zhenqi & Wang, Xin & Zhang, Xueyan & Huang, Xiangyang & Zhang, Fucang & Feng, Li, 2024. "Integrated assessment of water-nitrogen management for winter oilseed rape production in Northwest China," Agricultural Water Management, Elsevier, vol. 298(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:322:y:2025:i:c:s0360544225012691. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.