Competitive equilibrium in electricity markets with heterogeneous users and price fluctuation penalty

Ermin Wei, Azarakhsh Malekian, Asuman Ozdaglar

Research output: Chapter in Book/Report/Conference proceedingConference contribution

6 Scopus citations

Abstract

We develop a flexible model of competitive equilibrium in electricity markets involving heterogeneous users with shiftable demand and generator with ramp-up and ramp-down costs. While the competitive equilibrium is efficient, it may feature undesirably high price volatility. To control this volatility, we introduce an explicit penalty term on the L - 2 norm of price fluctuation in the system objective. We then establish an equivalent representation of this penalized problem. Based on the new formulation, we design alternative allocation rules to reduce price fluctuation and propose a distributed market implementation thereof.

Original languageEnglish (US)
Title of host publication53rd IEEE Conference on Decision and Control,CDC 2014
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages6452-6458
Number of pages7
EditionFebruary
ISBN (Electronic)9781479977468
DOIs
StatePublished - 2014
Event2014 53rd IEEE Annual Conference on Decision and Control, CDC 2014 - Los Angeles, United States
Duration: Dec 15 2014Dec 17 2014

Publication series

NameProceedings of the IEEE Conference on Decision and Control
NumberFebruary
Volume2015-February
ISSN (Print)0743-1546
ISSN (Electronic)2576-2370

Other

Other2014 53rd IEEE Annual Conference on Decision and Control, CDC 2014
Country/TerritoryUnited States
CityLos Angeles
Period12/15/1412/17/14

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Modeling and Simulation
  • Control and Optimization

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