Title :
Wholesale energy market in a smart grid: Dynamic modeling and stability
Author :
Kiani, Arman ; Annaswamy, Anuradha
Author_Institution :
Inst. of Autom. Control Eng., Tech. Univ. Munchen, Munich, Germany
Abstract :
The recent paradigm shift in the architecture of a smart grid is driven by the need to integrate renewable energy sources, the availability of information via advanced metering and communication, and an emerging policy of a demand structure that is intertwined with pricing. By using smart grid communication technologies that offer dynamic information, the ability to use electricity more efficiently and provide real-time information to utilities is expected to be significantly improved. The introduction of both renewable energy sources as well as efforts to integrate them through an information processing layer brings in dynamic interactions between the major components of a smart grid. In this paper, a dynamic model of the wholesale energy market due to the network constraints is derived. This dynamic model is fundamentally linked to one of the central features of the energy market, of optimal power flow. Beginning with a framework that includes real-time pricing, an attempt is made in this model to capture the dynamic interactions between generation, demand, locational marginal price, and congestion price near the equilibrium of the optimal dispatch. Conditions under which stability of the market can be guaranteed are derived. Numerical studies are reported to illustrate the dynamic model, and its stability properties.
Keywords :
load flow; power markets; smart power grids; advanced metering; congestion price; demand; demand structure; dynamic information; dynamic interactions; dynamic modeling; generation; information processing layer; locational marginal price; market stability; network constraints; optimal dispatch equilibrium; optimal power flow; real-time pricing; renewable energy sources; smart grid communication technologies; wholesale energy market; Asymptotic stability; Generators; Optimization; Power system stability; Real time systems; Stability analysis; Transmission line matrix methods;
Conference_Titel :
Decision and Control and European Control Conference (CDC-ECC), 2011 50th IEEE Conference on
Conference_Location :
Orlando, FL
Print_ISBN :
978-1-61284-800-6
Electronic_ISBN :
0743-1546
DOI :
10.1109/CDC.2011.6161681