Convex hull pricing for demand response in electricity markets

Naoki Ito, Akiko Takeda, Toru Namerikawa

研究成果: Conference contribution

4 引用 (Scopus)

抜粋

Dynamic pricing (a.k.a. real-time pricing) is a method of invoking a response in demand pricing electricity at hourly (or more often) intervals. Several studies have proposed dynamic pricing models that maximize the sum of the welfares of consumers and suppliers under the condition that the supply and demand are equal. They assume that the cost functions of suppliers are convex. In practice, however, they are not convex because of the startup costs of generators. On the other hand, many studies have taken startup costs into consideration for unit commitment problems (UCPs) with a fixed demand. The Lagrange multiplier of the UCP, called convex hull pricing (CHP), minimizes the uplift payment that is disadvantageous to suppliers. However, CHP has not been used in the context of demand response. This paper presents a new dynamic pricing model based on CHP. We apply CHP approach invented for the UCP to a demand response market model, and theoretically show that the CHP is given by the Lagrange multiplier of a social welfare maximization problem whose objective function is represented as the sum of the customer's utility and supplier's profit. In addition, we solve the dual problem by using an iterative algorithm based on the subgradient method. Numerical simulations show that the prices determined by our algorithm give sufficiently small uplift payments in a realistic number of iterations.

元の言語English
ホスト出版物のタイトル2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013
ページ151-156
ページ数6
DOI
出版物ステータスPublished - 2013 12 1
イベント2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013 - Vancouver, BC, Canada
継続期間: 2013 10 212013 10 24

出版物シリーズ

名前2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013

Other

Other2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013
Canada
Vancouver, BC
期間13/10/2113/10/24

ASJC Scopus subject areas

  • Hardware and Architecture

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  • これを引用

    Ito, N., Takeda, A., & Namerikawa, T. (2013). Convex hull pricing for demand response in electricity markets. : 2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013 (pp. 151-156). [6687949] (2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013). https://doi.org/10.1109/SmartGridComm.2013.6687949