Dynamic economic dispatch among strategic generators with storage systems

We consider a dynamic economic dispatch problem in wholesale electricity markets. The key feature is that each generator has its own energy storage system, which makes the problem coupled across the time horizon. To implement the optimal dispatch among strategic generators, one major challenge is that the independent system operator is unaware of the operation of the storages. Nevertheless, we show that under certain conditions, the locational marginal pricing mechanism, defined on the static economic dispatch problem, can still induce an efficient Nash equilibrium in the dynamic setting. We also present an alternative pricing mechanism that can induce an efficient Nash equilibrium in a wider range of scenarios.