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

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Control and Optimization Methods for Electric Smart Grids

Part of the book series: Power Electronics and Power Systems ((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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Notes

  1. 1.

    While these preliminaries are also addressed in [16], we introduce them here too for the sake of completeness.

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Acknowledgements

This work was supported by the Technische Universität München—Institute for Advanced Study, funded by the German Excellence Initiative and by Deutsche Forschungsgemeinschaft (DFG) through the TUM International Graduate School of Science and Engineering (IGSSE).

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Authors and Affiliations

  1. Institute of Automatic Control Engineering, Technische Universität München, D-80290, Munich, Germany

    Arman Kiani

  2. Department of Mechanical Engineering, Massachusetts Institute of Technology, Cambridge, MA, 02319, USA

    Anuradha Annaswamy

Authors
  1. Arman Kiani
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  2. Anuradha Annaswamy
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Correspondence to Arman Kiani .

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Editors and Affiliations

  1. , Electrical and Computer Engineering, North Carolina State University, Keystone Bldg 100-26, Raleigh, 27695, North Carolina, USA

    Aranya Chakrabortty

  2. , Electrical & Computer Engineering, Carnegie Mellon University, Forbes Ave. 5000, Pittsburgh, 15213-3890, Pennsylvania, USA

    Marija D. Ilić

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Kiani, A., Annaswamy, A. (2012). Wholesale Energy Market in a Smart Grid: A Discrete-Time Model and the Impact of Delays. In: Chakrabortty, A., Ilić, M. (eds) Control and Optimization Methods for Electric Smart Grids. Power Electronics and Power Systems, vol 3. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-1605-0_4

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  • DOI: https://doi.org/10.1007/978-1-4614-1605-0_4

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  • Publisher Name: Springer, New York, NY

  • Print ISBN: 978-1-4614-1604-3

  • Online ISBN: 978-1-4614-1605-0

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