Dynamic Pricing and Stabilization of Supply and Demand in Modern Electric Power Grids
By Mardavij Roozbehani, Munther A. Dahleh, Sanjoy K. Mitter. 2010 First IEEE International Conference on Smart Grid Communications, 2010
178 citations recorded by the source corpus.
The paper proposes a mechanism for real-time pricing of electricity in smart power grids, with price stability as the primary concern. In previous publications the authors argued that relaying the real-time wholesale market prices to the end consumers creates a closed loop feedback system which could be unstable or lack robustness, leading to extreme price volatility. In this paper, a mathematical model is developed for characterization of the dynamic evolution of supply, (elastic) demand, and market clearing (locational marginal) prices under real-time pricing. It is assumed that the real-time prices for retail consumers are derived from the Locational Marginal Prices (LMPs) of the wholesale balancing markets. The main contribution of the paper is in presenting an effective stabilizing pricing algorithm and characterization of its effects on system efficiency. Numerical simulations conform with our analysis and show the stabilizing effect of the mechanism and its robustness to disturbances.
Subfields: Electrical and Electronic Engineering
View Paper: https://www.semanticscholar.org/paper/06fd61928157fd193a7d4146c1af787d835f32dd
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In Electrical and Electronic Engineering
Citations in the corpus
- Volatility of Power Grids Under Real-Time Pricing (2011, background): “We refer the interested reader to [20] , [22], [21], and [17] for more details.”
- Dynamic Pricing and Learning: Historical Origins, Current Research, and New Directions (2013, unknown): “pricing [26,27], to name a few.”
- Smart Grid — The New and Improved Power Grid: A Survey (2012, unknown): “Individual User [32, 40] [53, 69] [95, 108] [120, 171] [170, 188] Multiple Users [98, 220] Electricity Industry [37, 74] [83, 89] [120, 150] [171, 178] [206, 218] Price [213] Emission [14, 32] [86, 151] [218]”
- Cloud Computing Applications for Smart Grid: A Survey (2015, unknown): “posed by the authors in [54], [55], [56], [57], [87], [88], [89], [90], [91], [92].”
- For the Grid and Through the Grid: The Role of Power Line Communications in the Smart Grid (2010, unknown): “orecasting and scheduling of generation and DSM would be possible with more relaxed communications requirements. Furthermore, storage levels and queued demand could also become part of pricing models [107]. We also point out that today there is a growing interest in hybrid AC/DC wiring infrastructur”
- Demand-Side Management via Distributed Energy Generation and Storage Optimization (2013, unknown): “Finally, it is important to remark that the optimization process analysis and the algorithm presented in Section III hold for any production and storage models resulting in a compact and convex strategy set as the ones in (4) and (10).”