TY - GEN
T1 - Competitive equilibrium in electricity markets with heterogeneous users and price fluctuation penalty
AU - Wei, Ermin
AU - Malekian, Azarakhsh
AU - Ozdaglar, Asuman
N1 - Publisher Copyright:
© 2014 IEEE.
PY - 2014
Y1 - 2014
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84988254283&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84988254283&partnerID=8YFLogxK
U2 - 10.1109/CDC.2014.7040401
DO - 10.1109/CDC.2014.7040401
M3 - Conference contribution
AN - SCOPUS:84988254283
T3 - Proceedings of the IEEE Conference on Decision and Control
SP - 6452
EP - 6458
BT - 53rd IEEE Conference on Decision and Control,CDC 2014
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 2014 53rd IEEE Annual Conference on Decision and Control, CDC 2014
Y2 - 15 December 2014 through 17 December 2014
ER -