Dynamic pricing considering constraints of power grids

Yoshihiro Okawa, Toru Namerikawa

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

6 Citations (Scopus)

Abstract

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.

Original languageEnglish
Title of host publicationProceedings of the SICE Annual Conference
PublisherSociety of Instrument and Control Engineers (SICE)
Pages1484-1489
Number of pages6
ISBN (Electronic)9784907764463
DOIs
Publication statusPublished - 2014 Oct 23
Event2014 53rd Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2014 - Sapporo, Japan
Duration: 2014 Sep 92014 Sep 12

Publication series

NameProceedings of the SICE Annual Conference

Other

Other2014 53rd Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2014
CountryJapan
CitySapporo
Period14/9/914/9/12

Keywords

  • gradient method with line search
  • real-time pricing
  • smart gird

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Computer Science Applications
  • Electrical and Electronic Engineering

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  • Cite this

    Okawa, Y., & Namerikawa, T. (2014). Dynamic pricing considering constraints of power grids. In Proceedings of the SICE Annual Conference (pp. 1484-1489). [6935280] (Proceedings of the SICE Annual Conference). Society of Instrument and Control Engineers (SICE). https://doi.org/10.1109/SICE.2014.6935280