Stability analysis of wholesale electricity markets under dynamic consumption models and real-time pricing
Name
Stability analysis of wholesale.pdf
Size
552.39 KB
Format
Adobe PDF
Checksum (MD5)
0d157609905a1ac6ec2cd61103a44775
Author(s)
Zhou, Datong P.
Tomlin, Claire J.
Roozbehani, Mardavij
Dahleh, Munther A
Date Issued
July 2017
Journal
2017 American Control Conference (ACC)
Publisher
Institute of Electrical and Electronics Engineers (IEEE)
Citation
Zhou, Datong P. et al. “Stability Analysis of Wholesale Electricity Markets under Dynamic Consumption Models and Real-Time Pricing.” 2017 American Control Conference (ACC), Seattle, Washington, USA, 24-26 May, 2017. IEEE, 2017. 2048–2053.
Version
Original manuscript
Abstract
This paper analyzes stability conditions for wholesale electricity markets under real-time retail pricing and realistic consumption models with memory, which explicitly take into account previous electricity prices and consumption levels. By passing on the current retail price of electricity from supplier to consumer and feeding the observed consumption back to the supplier, a closed-loop dynamical system for electricity prices and consumption arises whose stability is to be investigated. Under mild assumptions on the generation cost of electricity and consumers' backlog disutility functions, we show that, for consumer models with price memory only, market stability is achieved if the ratio between the consumers' marginal backlog disutility and the suppliers' marginal cost of supply remains below a fixed threshold. Further, consumer models with price and consumption memory can result in greater stability regions and faster convergence to the equilibrium compared to models with price memory alone, if consumption deviations from nominal demand are adequately penalized.
MIT Department
Massachusetts Institute of Technology. Institute for Data, Systems, and Society
Massachusetts Institute of Technology. Laboratory for Information and Decision Systems
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.23919/ACC.2017.7963254
