A Two-Stage Market Mechanism for Electricity with Renewable Generation

09/02/2019
by   Nathan Dahlin, et al.
0

We consider a two stage market mechanism for trading electricity including renewable generation as an alternative to the widely used multi-settlement market structure. The two stage market structure allows for recourse decisions by the market operator, which is not possible in today's markets. We allow for different generation cost curves in the forward and the real-time stage. We have considered costs of demand response programs, and black outs but have ignored network structure for the sake of simplicity. Our first result is to show existence (by construction) of a sequential competitive equilibrium (SCEq) in such a two-stage market. We then argue social welfare properties of such an SCEq. We then design a market mechanism that achieves social welfare maximization when the market participants are non-strategic.

READ FULL TEXT

page 1

page 2

page 3

page 4

research
07/13/2022

On Market Clearing of Day Ahead Auctions for European Power Markets: Cost Minimisation versus Social Welfare Maximisation

For the case of inflexible demand and considering network constraints, w...
research
02/20/2021

Mechanism Design Powered by Social Interactions

Mechanism design has traditionally assumed that the set of participants ...
research
10/07/2018

A General Sensitivity Analysis Approach for Demand Response Optimizations

It is well-known that demand response can improve the system efficiency ...
research
03/02/2021

Social Profit Optimization with Demand Response Management in Electricity Market: A Multi-timescale Leader-following Approach

In the electricity market, it is quite common that the market participan...
research
02/25/2019

Near-optimal demand side management in retail electricity markets with coupling constraints via indirect mechanism design

Recently there have been several historical changes in electricity netwo...
research
08/02/2021

Prescribing net demand for electricity market clearing

We consider a two-stage electricity market comprising a forward and a re...
research
05/28/2022

Discrimination-Based Double Auction for Maximizing Social Welfare in the Electricity and Heating Market Considering Privacy Preservation

This paper proposes a doubled-sided auction mechanism with price discrim...

Please sign up or login with your details

Forgot password? Click here to reset