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dc.contributor.authorRoozbehani, Mardavij
dc.contributor.authorDahleh, Munther A.
dc.contributor.authorMitter, Sanjoy K.
dc.date.accessioned2014-04-03T16:22:42Z
dc.date.available2014-04-03T16:22:42Z
dc.date.issued2012-05
dc.date.submitted2012-02
dc.identifier.issn0885-8950
dc.identifier.issn1558-0679
dc.identifier.urihttp://hdl.handle.net/1721.1/85994
dc.descriptionOriginal manuscript: June 7, 2011en_US
dc.description.abstractThe paper proposes a framework for modeling and analysis of the dynamics of supply, demand, and clearing prices in power systems with real-time retail pricing and information asymmetry. Characterized by passing on the real-time wholesale electricity prices to the end consumers, real-time pricing creates a closed-loop feedback system between the physical layer and the market layer of the system. In the absence of a carefully designed control law, such direct feedback can increase sensitivity and lower the system's robustness to uncertainty in demand and generation. 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 may become more volatile. Since new demand response technologies increase the price-elasticity of demand, and since increased penetration of distributed generation can also increase the uncertainty in price-based demand response, the theoretical findings suggest that the architecture under examination can potentially lead to increased volatility. This study highlights the need for assessing architecture systematically and in advance, in order to optimally strike the trade-offs between volatility/robustness and performance metrics such as economic efficiency and environmental efficiency.en_US
dc.language.isoen_US
dc.publisherInstitute of Electrical and Electronics Engineers (IEEE)en_US
dc.relation.isversionofhttp://dx.doi.org/10.1109/tpwrs.2012.2195037en_US
dc.rightsCreative Commons Attribution-Noncommercial-Share Alikeen_US
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/en_US
dc.sourcearXiven_US
dc.titleVolatility of Power Grids Under Real-Time Pricingen_US
dc.typeArticleen_US
dc.identifier.citationRoozbehani, Mardavij, Munther A. Dahleh, and Sanjoy K. Mitter. “Volatility of Power Grids Under Real-Time Pricing.” IEEE Trans. Power Syst. 27, no. 4 (n.d.): 1926–1940.en_US
dc.contributor.departmentMassachusetts Institute of Technology. Department of Electrical Engineering and Computer Scienceen_US
dc.contributor.departmentMassachusetts Institute of Technology. Engineering Systems Divisionen_US
dc.contributor.departmentMassachusetts Institute of Technology. Laboratory for Information and Decision Systemsen_US
dc.contributor.mitauthorRoozbehani, Mardavijen_US
dc.contributor.mitauthorDahleh, Munther A.en_US
dc.contributor.mitauthorMitter, Sanjoy K.en_US
dc.relation.journalIEEE Transactions on Power Systemsen_US
dc.eprint.versionOriginal manuscripten_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/NonPeerRevieweden_US
dspace.orderedauthorsRoozbehani, Mardavij; Dahleh, Munther A.; Mitter, Sanjoy K.en_US
dc.identifier.orcidhttps://orcid.org/0000-0002-1470-2148
dc.identifier.orcidhttps://orcid.org/0000-0002-8619-1295
mit.licenseOPEN_ACCESS_POLICYen_US
mit.metadata.statusComplete


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