Sciweavers

Share
CDC
2010
IEEE

On the stability of wholesale electricity markets under real-time pricing

8 years 5 months ago
On the stability of wholesale electricity markets under real-time pricing
— The paper proposes a mathematical model for the dynamic evolution of supply, demand, and clearing prices under a class of real-time pricing mechanisms characterized by passing on the real-time wholesale prices to the end consumers. The effects that such mechanisms could pose on the stability and efficiency of the entire system is investigated and several stability criteria are presented. It is shown that relaying the realtime wholesale electricity prices to the end consumers creates a closed loop feedback system which could be unstable or lack robustness, leading to extreme price volatility. Finally, a result is presented which characterizes the efficiency losses incurred when, in order to achieve stability, the wholesale prices are adjusted by a static pricing function before they are passed on to the retail consumers.
Mardavij Roozbehani, Munther Dahleh, Sanjoy K. Mit
Added 23 Aug 2011
Updated 23 Aug 2011
Type Journal
Year 2010
Where CDC
Authors Mardavij Roozbehani, Munther Dahleh, Sanjoy K. Mitter
Comments (0)
books