Contract Optimization of Renewable Energy Electricity Supply Chain on the Island for Sustainability ()
ABSTRACT
In China, a large number of islands with power demand have not developed
renewable energy, and their power supply has long been dependent on fossil
fuels. In this paper, the author assumes that the supply and demand for
electricity are uncertain, and consider an island electricity supply chain consisting
of a single intermittent renewable plant and a single electricity sales company
(ESC) and introduce Stackelberg game theory into it. In this case, the author
studies how to improve the power supply efficiency and promote the development
of renewable energy under the main power generation way of renewable energy,
also analyzes the influence of different parameters on the decision-making of
supply chain participants. Through comparative analysis, it can be found that
the efficiency of supply chain and the development of renewable energy
resources are significantly improved after the introduction of revenue sharing
contract and revenue and risk sharing contract, and the effect of the latter
contract is more obvious. Furthermore, the research shows that to maintain high
levels of installed capacity in renewable energy, the efficiency of electricity
generation equipment is not always the higher the better. And the research also
reminds governments to take full account of the contractual environment of the
electricity supply chain when subsidizing renewable energy.
Share and Cite:
Jiang, B. (2021) Contract Optimization of Renewable Energy Electricity Supply Chain on the Island for Sustainability.
Open Journal of Business and Management,
9, 3053-3075. doi:
10.4236/ojbm.2021.96171.