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 su...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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Institute of Electrical and Electronics Engineers (IEEE)
2017
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| Online Access: | http://hdl.handle.net/1721.1/110808 https://orcid.org/0000-0002-1470-2148 |
| _version_ | 1811086076660416512 |
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| author | Zhou, Datong P. Tomlin, Claire J. Roozbehani, Mardavij Dahleh, Munther A |
| author2 | Massachusetts Institute of Technology. Institute for Data, Systems, and Society |
| author_facet | Massachusetts Institute of Technology. Institute for Data, Systems, and Society Zhou, Datong P. Tomlin, Claire J. Roozbehani, Mardavij Dahleh, Munther A |
| author_sort | Zhou, Datong P. |
| collection | MIT |
| description | 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. |
| first_indexed | 2024-09-23T13:20:31Z |
| format | Article |
| id | mit-1721.1/110808 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T13:20:31Z |
| publishDate | 2017 |
| publisher | Institute of Electrical and Electronics Engineers (IEEE) |
| record_format | dspace |
| spelling | mit-1721.1/1108082022-09-28T13:32:20Z Stability analysis of wholesale electricity markets under dynamic consumption models and real-time pricing Zhou, Datong P. Tomlin, Claire J. Roozbehani, Mardavij Dahleh, Munther A Massachusetts Institute of Technology. Institute for Data, Systems, and Society Massachusetts Institute of Technology. Laboratory for Information and Decision Systems Roozbehani, Mardavij Dahleh, Munther A 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. 2017-07-21T19:33:55Z 2017-07-21T19:33:55Z 2017-07 2017-05 Article http://purl.org/eprint/type/ConferencePaper 978-1-5090-5992-8 http://hdl.handle.net/1721.1/110808 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. https://orcid.org/0000-0002-1470-2148 en_US http://dx.doi.org/10.23919/ACC.2017.7963254 2017 American Control Conference (ACC) Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Institute of Electrical and Electronics Engineers (IEEE) arXiv |
| spellingShingle | Zhou, Datong P. Tomlin, Claire J. Roozbehani, Mardavij Dahleh, Munther A Stability analysis of wholesale electricity markets under dynamic consumption models and real-time pricing |
| title | Stability analysis of wholesale electricity markets under dynamic consumption models and real-time pricing |
| title_full | Stability analysis of wholesale electricity markets under dynamic consumption models and real-time pricing |
| title_fullStr | Stability analysis of wholesale electricity markets under dynamic consumption models and real-time pricing |
| title_full_unstemmed | Stability analysis of wholesale electricity markets under dynamic consumption models and real-time pricing |
| title_short | Stability analysis of wholesale electricity markets under dynamic consumption models and real-time pricing |
| title_sort | stability analysis of wholesale electricity markets under dynamic consumption models and real time pricing |
| url | http://hdl.handle.net/1721.1/110808 https://orcid.org/0000-0002-1470-2148 |
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