Revenue-Sharing Contract Coordination in Hybrid Power Supply Chains Using an Improved Particle Swarm Optimization Algorithm

Government subsidies for renewable energy consumption and Renewable Portfolio Standards (RPS) are critical issues in the power supply chain. To address these issues, this study considers three decision-making scenarios: a centralized supply chain, a decentralized supply chain, and a coordinated supply chain employing revenue-sharing contracts between generators and retailers. Moreover, an improved Particle Swarm Optimization (PSO) algorithm is utilized to solve the three proposed models. The results indicate that wholesale prices for both renewable and fossil-fueled electricity are higher under the decentralized decision-making scenario than under the revenue-sharing contract mechanism. Furthermore, the retailer achieves the highest procurement volumes for both types of electricity and obtains maximum profit under the revenue-sharing contract mechanism. From the perspective of the overall supply chain, the revenue-sharing contract mechanism effectively mitigates the double marginalization effect inherent in the decentralized power supply chain.