Premium
Optimal Pricing Algorithm in the Electricity Market with Battery and Accumulator and Demand–Supply Balancing
Author(s) -
Miyano Yuki,
Namerikawa Toru
Publication year - 2015
Publication title -
electrical engineering in japan
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.136
H-Index - 28
eISSN - 1520-6416
pISSN - 0424-7760
DOI - 10.1002/eej.22698
Subject(s) - accumulator (cryptography) , hydraulic accumulator , electricity market , supply and demand , profit (economics) , electricity , mathematical optimization , computer science , demand response , dual (grammatical number) , gradient descent , battery (electricity) , algorithm , power (physics) , economics , engineering , mathematics , electrical engineering , microeconomics , artificial neural network , mechanical engineering , physics , quantum mechanics , art , literature , machine learning
SUMMARY This paper considers the day‐ahead market with batteries and accumulators to level power generation. First, we model consumers with batteries, generators with batteries, and accumulators, all of whom strive to maximize their own profit. An optimal pricing algorithm based on dual decomposition and the steepest descent method is derived and shown to be stable. Finally, the effectiveness of the algorithm is demonstrated by means of numerical simulations which indicate that it achieves demand–supply balance.