Performance analysis of a robust and multi-approach model in retail electricity market achieving efficient contracts between retailer, end users and wholesalers

In this paper, a new bi-level model is presented in order to set the interaction between different players in electricity market contracts. The proposed model framework is multi-objective so that the aims of retailer and customers are met simultaneously. In this study, new parameters and indexes for interaction of players will be introduced. In the upper level of this model, the retailer’s profit will be maximized and in the lower level, the customer’s cost will be minimized. Based on the retailer’s interaction with customers in the proposed model, some customers will be selected from the customers group to contract with power retailer. In the proposed model, a robust optimization approach (ROA) is used to manage the retailer’s risk in different conditions due to the uncertainty of energy supply by the wholesaler. The analysis of multi-objective approach in this model is also carried out based on Torabi-Hassini (TH) method. Finally, after the required linearization, the proposed Mixed Integer linear programming (MILP) model in the presence of Karush–Kuhn–Tucker conditions will implement in GAMS software and solved via GUROBI solver.