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CORR
2011
Springer

Volatility of Power Grids under Real-Time Pricing

9 years 6 months ago
Volatility of Power Grids under Real-Time Pricing
—The paper proposes a framework for modeling and analysis of the dynamics of supply, demand, and clearing prices in power system with real-time retail pricing and information asymmetry. Real-time retail pricing is characterized by passing on the real-time wholesale electricity prices to the end consumers, and is shown to create a closed-loop feedback system between the physical layer and the market layer of the power system. In the absence of a carefully designed control law, such direct feedback between the two layers could increase volatility and lower the system’s robustness to uncertainty in demand and generation. A new notion of generalized price-elasticity is introduced, and it is shown that price volatility can be characterized in terms of the system’s maximal relative price elasticity, defined as the maximal ratio of the generalized price-elasticity of consumers to that of the producers. As this ratio increases, the system becomes more volatile, and eventually, unstable....
Mardavij Roozbehani, Munther Dahleh, Sanjoy K. Mit
Added 19 Aug 2011
Updated 19 Aug 2011
Type Journal
Year 2011
Where CORR
Authors Mardavij Roozbehani, Munther Dahleh, Sanjoy K. Mitter
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