Distributed Optimal Power Management via Negawatt Trading in Real-Time Electricity Market

Yoshihiro Okawa, Toru Namerikawa

Research output: Contribution to journalArticlepeer-review

38 Citations (Scopus)


This paper presents a distributed optimal power supply-demand management method by using negawatt trading in a real-time electricity market. In the negawatt trading, power consumers reduce their own power demand and receive monetary reward from the market operator. This paper discusses a power adjustment method via negawatt trading by including charge or discharge power from energy storage systems. In order to derive appropriate electricity incentive prices for consumers and to use energy storage systems in power grids efficiently, we deal with a power adjustment problem by using some future power supply information from generators. We then show a novel market algorithm to solve this problem in a distributed manner through market trading. Finally, numerical simulation results illustrate the effectiveness of our proposed method.

Original languageEnglish
Article number7930533
Pages (from-to)3009-3019
Number of pages11
JournalIEEE Transactions on Smart Grid
Issue number6
Publication statusPublished - 2017 Nov


  • AC model of power grid
  • Smart grid
  • negawatt trading
  • real-time electricity market

ASJC Scopus subject areas

  • Computer Science(all)


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