Optimal pricing algorithm in the electricity market with battery and accumulator and demand-supply balancing

Yuki Miyano, Toru Namerikawa

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This paper considers the day-ahead market with batteries and accumulators to level power generation. First, we model consumers with batteries, generators with batteries, and accumulators, all of whom strive to maximize their own profit. An optimal pricing algorithm based on dual decomposition and the steepest descent method is derived and shown to be stable. Finally, the effectiveness of the algorithm is demonstrated by means of numerical simulations which indicate that it achieves demand-supply balance.

Original languageEnglish
Pages (from-to)8-18
Number of pages11
JournalElectrical Engineering in Japan (English translation of Denki Gakkai Ronbunshi)
Volume191
Issue number4
DOIs
Publication statusPublished - 2015 Jun 1

Fingerprint

Steepest descent method
Power generation
Costs
Profitability
Decomposition
Computer simulation
Power markets

Keywords

  • Demand response
  • Dual decomposition
  • Electric power liberalization
  • Steepest descent method

ASJC Scopus subject areas

  • Electrical and Electronic Engineering
  • Energy Engineering and Power Technology

Cite this

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AB - This paper considers the day-ahead market with batteries and accumulators to level power generation. First, we model consumers with batteries, generators with batteries, and accumulators, all of whom strive to maximize their own profit. An optimal pricing algorithm based on dual decomposition and the steepest descent method is derived and shown to be stable. Finally, the effectiveness of the algorithm is demonstrated by means of numerical simulations which indicate that it achieves demand-supply balance.

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