Wholesale Energy Market in a Smart Grid: A Discrete-Time Model and the Impact of Delays

Chapter
Part of the Power Electronics and Power Systems book series (PEPS, volume 3)

Abstract

The main foundations of the emerging Smart Grid are (1) Distributed Energy Resources (DER) enabled primarily by intermittent, nondispatchable renewable energy sources such as wind and solar, and independent microgrids and (2) Demand Response (DR), the concept of controlling loads via cyber-based communication and control and economic signals. While smart grid communication technologies offer dynamic information provide real-time signals to utilities, they inevitably introduce delays in the energy real-time market. In this article, a dynamic, discrete-time model of the wholesale energy market that captures these interactions is derived. Beginning with a framework that includes optimal power flow and real-time pricing, this model is shown to capture the dynamic interactions between generation, demand, and locational marginal price near the equilibrium of the optimal dispatch. It is shown that the resulting dynamic real-time market has stability properties that are dependent on the delay due to the measurement and communication. Numerical studies are reported to illustrate the dynamic model, and a suitable communication topology is suggested.

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Copyright information

© Springer Science+Business Media, LLC 2012

Authors and Affiliations

  1. 1.Institute of Automatic Control EngineeringTechnische Universität MünchenMunichGermany
  2. 2.Department of Mechanical EngineeringMassachusetts Institute of TechnologyCambridgeUSA

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