This paper deals with a distributed decision procedure for determining the electricity price for a future smart grid. In order to derive the optimal regional prices and improve the convergence speed of the algorithm without private information of market players, we propose a price decision algorithm with an alternating decision making of market players. In this paper, we show that the optimal regional prices derived by using our proposed algorithm maximize the social welfare of power networks which includes profits of power consumers and power suppliers with renewable energy generators. Also, we discuss the convergence property of the proposed price decision algorithm. Finally, the feasibility of our proposed dynamic pricing methodology is shown with numerical simulation results.
|Title of host publication
|2015 54th Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2015
|Institute of Electrical and Electronics Engineers Inc.
|Number of pages
|Published - 2015 Sept 30
|54th Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2015 - Hangzhou, China
Duration: 2015 Jul 28 → 2015 Jul 30
|54th Annual Conference of the Society of Instrument and Control Engineers of Japan, SICE 2015
|15/7/28 → 15/7/30
- Alternating decision making
- Distributed dynamic pricing
- Real-time pricing
- Smart gird
ASJC Scopus subject areas
- Control and Systems Engineering