A Responsive Pricing Grid Operator Sourcing from Competing Generators under Uncertain Supply and Demand
Round 1
Reviewer 1 Report
A. Originality
I. Applicative novelty – good
This paper analyzes the practical operation of the electricity supply chain, based on a one- period model with one grid operator and two generators. As well as pricing and ordering policies, the paper investigates sourcing selection, including (a) sole sourcing from a reliable generator (SR, such as the Southern China Power Grid), (b) sole sourcing from an unreliable generator (SU, such as the West Inner Mongolia Power Grid), and (c) flexible sourcing from both an unreliable generator and a reliable generator (FS, such as the Eastern China Power Grid and Shandong Power Grid).
R1. The three analyzed cases are very well documented, but their conclusions need to be synthesized in one place (maybe by using a Table), in order to increase the impact.
II. Scientific novelty – good
A principal objective of this research is to investigate and optimize pricing strategies for the generators and sourcing strategies for the grid operator. The paper introduces Stackelberg game theory and the penalty-sharing contract into the model, thus determining several equilibriums. Also, the decision-making process of multi-uncertainties, including market demand uncertainty, power output uncertainty, and disruption risk are analyzed and quantified.
R2. The expected profit, provided by equation A.36, would be an interesting indicator and it will bring useful information for the three models.
B. Structure
The article has the main key elements of a review paper: abstract, introduction, model, description, results and conclusions.
C. Language & Style: correct
R3. The article has very few language and style errors.
D. Previous Research
The paper is based on an extended number of references – 47, all cited in the text and none of them belong to the authors.
I would like to suggest to the authors the following reference, which could be of help for them for both current and future research endeavors:
João P. S. Catalão - book Smart and Sustainable power systems: Operations, Planning and Economics of Insular Electricity grids - chapter: Electric price signals, Economic operation and Risk Analysis, pp. 285-345, Ed. CRC Press Taylor & Francis Group, 2015, ISBN 9781498712125 - CAT #K25101
Karampelas, K, Ekonomu, L - book: Electricity distribution - Intelligent Solutions for Electricity Transmission and Distribution Networks - Series: Energy Systems,Springer, 2016, ISBN 978-3-662-49434-9, WOS:000387869200015
E. Figures and Tables
R4. The caption of Fig. 6 has a different font size.
F. References
All the references are cited in the text.
Author Response
Please see the attachment.
Author Response File: 
Author Response.docx
Reviewer 2 Report
In the article, the authors analyze strategies and benefits of flexibile and sole sourcing as well as cost evaluation under the premise that generators act as price-setters. In general, the paper would benefit from a more compressed way to present (intermediate) results. In chapter 2 the literature review is carried out very deeply. Still, different legal frameworks and assumptions by the analyzed articles should be considered in context (e.g. legal unbundling). In chapter 3 the mathematical model description in continuous text form affects comprehensiveness of topic. Sources and background for assumptions can be improved. Chapter 4 is dedicated to the mathematical model analysis and provides reasonable propositions and objective functions. Model analysis is supported by a numerical experiment in chapter 5 that is quite meaningful. And still, the question, if conclusions of the numerical example can be applied to generality, is not fully explained. It needs to be adressed in the context of the mathematical models. The article is well concluded in section 6. An appendix includes extensive mathematical derivations of used equations.
Author Response
Please see the attachment.
Author Response File: Author Response.docx
