Market-based Power Dispatch and Pricing Using Stochastic Model Predictive Control

We propose a decentralized electricity dispatch and pricing mechanism that enables a grid with intermittent energy sources to dispatch energy within a user-specified risk bound. This approach allows each power provider to specify the probability density function of the amount of energy that it has to generate in the future. As a result, a power provider can quantitatively limit the risk of power shortage by imposing chance constraints in a decentralized manner. We demonstrate the capabilities of the proposed approach by simulations using real data.

[1]  John Lygeros,et al.  Probabilistic guarantees for the N-1 security of systems with wind power generation , 2013 .

[2]  Ufuk Topcu,et al.  Risk-mitigated optimal power flow for wind powered grids , 2012, 2012 American Control Conference (ACC).

[3]  Jhi-Young Joo,et al.  Efficient Coordination of Wind Power and Price-Responsive Demand—Part I: Theoretical Foundations , 2011, IEEE Transactions on Power Systems.

[4]  Pravin Varaiya,et al.  Smart Operation of Smart Grid: Risk-Limiting Dispatch , 2011, Proceedings of the IEEE.

[5]  Alberto Bemporad,et al.  Stochastic MPC for real-time market-based optimal power dispatch , 2011, IEEE Conference on Decision and Control and European Control Conference.

[6]  Na Li,et al.  Two Market Models for Demand Response in Power Networks , 2010, 2010 First IEEE International Conference on Smart Grid Communications.

[7]  Debin Fang,et al.  Optimal Pricing Mechanism for Generators and Large Consumers Considering Power Transmission Cost , 2010, 2010 Asia-Pacific Power and Energy Engineering Conference.

[8]  F. Bouffard,et al.  Stochastic security for operations planning with significant wind power generation , 2008, 2008 IEEE Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century.

[9]  D. Jayaweera,et al.  Comparison of risk-based and deterministic security assessments , 2007 .

[10]  Antonio J. Conejo,et al.  Market-clearing with stochastic security - part I: formulation , 2006 .

[11]  A. Conejo,et al.  Market-clearing with stochastic security-part I: formulation , 2005, IEEE Transactions on Power Systems.

[12]  Jan Tuinstra,et al.  Price Dynamics in Equilibrium Models, The Search for Equilibrium and the Emergence of Endogenous Fluctuations. Advances in Computational Economics. no 16. , 2000 .