Notation

Descriptions

Parameter

p

The retail price of electricity determined by government guidance, p > w

X

Consumers demand for electricity follows a CDF of F(x), and its PDF is f(x)

y

Electricity output density of renewable energy defined on the range [0, 1], it follows a CDF of H(y), and its PDF is h(y)

q

Electricity output, it can be simplified as q = θ 0 y K where θ 0 is the effective output coefficient

c

Unit installation cost of renewable energy

ϕ

Share ratio of ESC to intermittent renewable plant under revenue sharing contract

g

Unit cost of emergency electricity generation

v

Unit compensation for unsold electricity of ESC under risk sharing contract, v < p ( 1 ϕ )

μ

Government subsidies for unit grid-connected electricity

Variable

Q

Electricity purchased quantity

K

Installed capacity of renewable energy

w

Wholesale electricity price