An online procurement auction for power demand response in storage-assisted smart grids

The quintessential problem in a smart grid is the matching between power supply and demand - a perfect balance across the temporal domain, for the stable operation of the power network. Recent studies have revealed the critical role of electricity storage devices, as exemplified by rechargeable batteries and plug-in electric vehicles (PEVs), in helping achieve the balance through power arbitrage. Such potential from batteries and PEVs can not be fully realized without an appropriate economic mechanism that incentivizes energy discharging at times when supply is tight. This work aims at a systematic study of such demand response problem in storage-assisted smart grids through a well-designed online procurement auction mechanism. The long-term social welfare maximization problem is naturally formulated into a linear integer program. We first apply a primal-dual optimization algorithm to decompose the online auction design problem into a series of one-round auction design problems, achieving a small loss in competitive ratio. For the one round auction, we show that social welfare maximization is still NP-hard, and design a primal-dual approximation algorithm that works in concert with the decomposition algorithm. The end result is a truthful power procurement auction that is online, truthful, and 2-competitive in typical scenarios.published_or_final_versio

Multiple Vickrey Auctions for Sustainable Electric Vehicle Charging

Electric vehicles (EVs) are important contributors to a sustainable future. However, uncontrolled EV charging in the smart grid is expected to stress its infrastructure, as it needs to accommodate extra electricity demand coming from EV charging. We propose an auction mechanism to optimally schedule EV charging in a sustainable manner so that the grid is not overloaded. Our solution has lower computational complexity, compared to state-of-the-art mechanisms, making it easily applicable to practice. Our mechanism creates electricity peak demand reduction, which is important for improving sustainability in the grid, and provides optimized charging speed design recommendations so that raw materials are not excessively used. We prove the optimal conditions that must hold, so that different stakeholder objectives are satisfied. We validate our mechanism on real-world data and examine how different trade-offs affect social welfare and revenues, providing a holistic view to grid stakeholders that need to satisfy potentially conflicting objectives

Online Linear Optimization with Inventory Management Constraints

This paper considers the problem of online linear optimization with inventory management constraints. Specifically, we consider an online scenario where a decision maker needs to satisfy her timevarying demand for some units of an asset, either from a market with a time-varying price or from her own inventory. In each time slot, the decision maker is presented a (linear) price and must immediately decide the amount to purchase for covering the demand and/or for storing in the inventory for future use. The inventory has a limited capacity and can be used to buy and store assets at low price and cover the demand when the price is high. The ultimate goal of the decision maker is to cover the demand at each time slot while minimizing the cost of buying assets from the market. We propose ARP, an online algorithm for linear programming with inventory constraints, and ARPRate, an extended version that handles rate constraints to/from the inventory. Both ARP and ARPRate achieve optimal competitive ratios, meaning that no other online algorithm can achieve a better theoretical guarantee. To illustrate the results, we use the proposed algorithms in a case study focused on energy procurement and storage management strategies for data centers

Online Linear Optimization with Inventory Management Constraints

This paper considers the problem of online linear optimization with inventory management constraints. Specifically, we consider an online scenario where a decision maker needs to satisfy her time-varying demand for some units of an asset, either from a market with a time-varying price or from her own inventory. In each time slot, the decision maker is presented a (linear) price and must immediately decide the amount to purchase for covering the demand and/or for storing in the inventory for future use. The inventory has a limited capacity and can be used to buy and store assets at low price and cover the demand when the price is high. The ultimate goal of the decision maker is to cover the demand at each time slot while minimizing the cost of buying assets from the market. We propose ARP, an online algorithm for linear programming with inventory constraints, and ARPRate, an extended version that handles rate constraints to/from the inventory. Both ARP and ARPRate achieve optimal competitive ratios, meaning that no other online algorithm can achieve a better theoretical guarantee. To illustrate the results, we use the proposed algorithms in a case study focused on energy procurement and storage management strategies for data centers