Distributed dynamic pricing with alternating decision making of market players

Yoshihiro Okawa, Toru Namerikawa

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

This paper deals with a distributed decision procedure for determining the electricity price for a future smart grid. In order to derive the optimal regional prices and improve the convergence speed of the algorithm without private information of market players, we propose a price decision algorithm with an alternating decision making of market players. In this paper, we show that the optimal regional prices derived by using our proposed algorithm maximize the social welfare of power networks which includes profits of power consumers and power suppliers with renewable energy generators. Also, we discuss the convergence property of the proposed price decision algorithm. Finally, the feasibility of our proposed dynamic pricing methodology is shown with numerical simulation results.

Original languageEnglish
Title of host publication2015 54th Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2015
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages888-893
Number of pages6
ISBN (Print)9784907764487
DOIs
Publication statusPublished - 2015 Sep 30
Event54th Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2015 - Hangzhou, China
Duration: 2015 Jul 282015 Jul 30

Other

Other54th Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2015
CountryChina
CityHangzhou
Period15/7/2815/7/30

Keywords

  • Alternating decision making
  • Distributed dynamic pricing
  • Real-time pricing
  • Smart gird

ASJC Scopus subject areas

  • Control and Systems Engineering

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