An integration mechanism between demand and supply side management of electricity markets
An integration mechanism between demand and supply side management of electricity markets
One of the main challenges in the emerging smart grid is to jointly consider the demand and supply, which is also reflected in the wholesale market (supply side) and the retail market (demand side). When integrating the demand and supply side into one framework, the mechanism for determining the market clearing price has been changed. This is due to the demand variations in the demand side in response to the market clearing price and the change of generation costs in the supply side from the demand variation. In order to find the best balance between the supply and demand under the demand response management scheme, this paper proposes a new integrated supply and demand coordination mechanism for the electricity market and smart pricing methods for generator and retailers. Another important contribution of this paper is to develop an efficient algorithm to find the match equilibrium between the demand and supply sides in the new proposed mechanism. Experimental results demonstrate that the new mechanism can effectively handle unpredictable demand under dynamic retail pricing and support the ISO to dispatch the generation economically. It can also help in achieving the goals of dynamic pricing such as maximizing the profits for retailers.
Demand response management, Electricity market, Smart grid, Smart pricing, Supply management
Liu, Zixu
1b07df56-a07b-4e78-bebc-38657ca80f76
Zeng, Xiaojun
717cfac4-cfd1-4c21-97fa-805251be75be
Meng, Fanlin
3c9359f7-2fea-4477-a84c-3a283d3701dc
27 November 2018
Liu, Zixu
1b07df56-a07b-4e78-bebc-38657ca80f76
Zeng, Xiaojun
717cfac4-cfd1-4c21-97fa-805251be75be
Meng, Fanlin
3c9359f7-2fea-4477-a84c-3a283d3701dc
Liu, Zixu, Zeng, Xiaojun and Meng, Fanlin
(2018)
An integration mechanism between demand and supply side management of electricity markets.
Energies, 11 (12), [3314].
(doi:10.3390/en11123314).
Abstract
One of the main challenges in the emerging smart grid is to jointly consider the demand and supply, which is also reflected in the wholesale market (supply side) and the retail market (demand side). When integrating the demand and supply side into one framework, the mechanism for determining the market clearing price has been changed. This is due to the demand variations in the demand side in response to the market clearing price and the change of generation costs in the supply side from the demand variation. In order to find the best balance between the supply and demand under the demand response management scheme, this paper proposes a new integrated supply and demand coordination mechanism for the electricity market and smart pricing methods for generator and retailers. Another important contribution of this paper is to develop an efficient algorithm to find the match equilibrium between the demand and supply sides in the new proposed mechanism. Experimental results demonstrate that the new mechanism can effectively handle unpredictable demand under dynamic retail pricing and support the ISO to dispatch the generation economically. It can also help in achieving the goals of dynamic pricing such as maximizing the profits for retailers.
Text
energies-11-03314-v2
More information
Accepted/In Press date: 23 November 2018
Published date: 27 November 2018
Keywords:
Demand response management, Electricity market, Smart grid, Smart pricing, Supply management
Identifiers
Local EPrints ID: 471253
URI: http://eprints.soton.ac.uk/id/eprint/471253
ISSN: 1996-1073
PURE UUID: 3ebb4175-50b6-41e7-99e7-0a3e26a8250a
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Date deposited: 01 Nov 2022 17:42
Last modified: 17 Mar 2024 04:15
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Contributors
Author:
Zixu Liu
Author:
Xiaojun Zeng
Author:
Fanlin Meng
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