12,350 research outputs found
Stability Analysis of Wholesale Electricity Markets under Dynamic Consumption Models and Real-Time Pricing
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.Comment: 8 pages, 7 Figures, accepted to the 2017 American Control Conferenc
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Dynamic Pricing, Advanced Metering, and Demand Response in Electricity Markets
Presents an overview and analysis of the possible approaches to bringing an active demand side into electricity markets. Part of a series of research reports that examines energy issues facing California
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. As
new demand response technologies and distributed storage increase the
price-elasticity of demand, the architecture under examination is likely to
lead to increased volatility and possibly instability. This highlights the need
for assessing architecture systematically and in advance, in order to optimally
strike the trade-offs between volatility, economic efficiency, and system
reliability
New market designs in electricity market simulation models: Deliverable D4.5
Project TradeRES - New Markets Design & Models for 100% Renewable Power Systems: https://traderes.eu/about/ABSTRACT: To integrate a high share of renewables in a future system, several modifications to the electricity market rules may need to be implemented. The most relevant market design concepts were identified from the literature and reported in work package 3. There are several uncertainties, for instance with respect to the questions of whether a future electricity market will provide enough incentives for investment in variable renewable energy sources (vRES) – mainly solar and wind energy – and in flexibility options, especially for
long periods with insufficient vRES generation. In this deliverable, the modelling requirements to analyse the new market rules are determined. The modelling efforts will reflect the main policy choices and are based on the strengths of the modelling capabilities from the consortium. The model enhancements to represent the temporal, spatial and sectoral flexibility will be approached in deliverables 4.1 to 4.3. For this reason, these topics will be described only briefly in this deliverable.N/
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