Direct Sourcing from Renewable Energy under Cost Uncertainty: A Bargaining Approach

Table 1

Parameter description.

Parameter	Description	Remarks
	The production cost of the renewable supplier	High cost expressed as , and low cost expressed as .
	Probability of the high-type renewable supplier
	Probability of the low-type renewable supplier
	Electricity retailing company’s marginal utility of purchasing one unit of electricity
	Bargaining patience coefficient (discount factor)
	Punishment coefficient in the deviation punishment mechanism
	Profits of electricity retailing company
	Profits of the renewable supplier
	Profits of the entire supply chain	The profits are expressed as when the production cost is high, and the profits are expressed as when the production cost is low.
	Purchasing quantity in the contract	The quantity of the high-type contract is , and the quantity of the low-type contract purchases is .
	The wholesale price in the contract	The wholesale price of the high-type contract is expressed as , and the wholesale price of the low-type contract is expressed as .
	Power purchase contract representation	The high-type contract is expressed as , and the low-type contract is expressed as .