TY - GEN
T1 - Dynamic pricing considering constraints of power grids
AU - Okawa, Yoshihiro
AU - Namerikawa, Toru
PY - 2014/10/23
Y1 - 2014/10/23
N2 - This paper deals with a model of a real-time electricity market for a smart grid, and discusses how to decide wholesale and retail prices of electricity among market participants: power consumers, power suppliers and an independent system operator. In this paper, we consider a linearized AC model of a power grid with a direct current process and show that the wholesale price for suppliers is determined as the optimal Lagrange multiplier corresponding to the nodal power balance constraints. In addition, we propose a decision procedure for the retail pricing of electricity for consumers. In order to improve the convergence speed of the algorithm, we apply the iterative gradient method with line search to a retail pricing decision procedure, in which the optimal step size is determined in each iteration step. Simulation results, finally, show the effectiveness of the proposed retail pricing decision procedure.
AB - This paper deals with a model of a real-time electricity market for a smart grid, and discusses how to decide wholesale and retail prices of electricity among market participants: power consumers, power suppliers and an independent system operator. In this paper, we consider a linearized AC model of a power grid with a direct current process and show that the wholesale price for suppliers is determined as the optimal Lagrange multiplier corresponding to the nodal power balance constraints. In addition, we propose a decision procedure for the retail pricing of electricity for consumers. In order to improve the convergence speed of the algorithm, we apply the iterative gradient method with line search to a retail pricing decision procedure, in which the optimal step size is determined in each iteration step. Simulation results, finally, show the effectiveness of the proposed retail pricing decision procedure.
KW - gradient method with line search
KW - real-time pricing
KW - smart gird
UR - http://www.scopus.com/inward/record.url?scp=84911867620&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84911867620&partnerID=8YFLogxK
U2 - 10.1109/SICE.2014.6935280
DO - 10.1109/SICE.2014.6935280
M3 - Conference contribution
AN - SCOPUS:84911867620
T3 - Proceedings of the SICE Annual Conference
SP - 1484
EP - 1489
BT - Proceedings of the SICE Annual Conference
PB - Society of Instrument and Control Engineers (SICE)
T2 - 2014 53rd Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2014
Y2 - 9 September 2014 through 12 September 2014
ER -
