Competitive Market with Renewable Power Producers Achieves Asymptotic Social Efficiency

Hossein Khazaei; Yue Zhao

doi:10.1109/PESGM.2018.8586654

Competitive Market with Renewable Power Producers Achieves Asymptotic Social Efficiency

Hossein Khazaei
, Yue Zhao

Electrical Engineering

Stony Brook University

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

2 Scopus citations

Abstract

A price-making two-settlement power market in which both conventional generators and renewable power producers (RPPs) participate is studied. It is proved that the Nash Equilibrium (NE) of the market converges to the social optimum as the number of RPPs increases. As a result, social efficiency is asymptotically achieved with a simple market mechanism for integrating RPPs, without the need for an independent system operator (ISO) to perform a centralized stochastic optimization. The analytical derivation of the NE offers an elegant charac-terization of the market power of the competitive RPPs. The market outcomes predicted by the developed theoretical results are demonstrated by simulation studies.

Original language	English
Title of host publication	2018 IEEE Power and Energy Society General Meeting, PESGM 2018
Publisher	IEEE Computer Society
ISBN (Electronic)	9781538677032
DOIs	https://doi.org/10.1109/PESGM.2018.8586654
State	Published - Dec 21 2018
Event	2018 IEEE Power and Energy Society General Meeting, PESGM 2018 - Portland, United States Duration: Aug 5 2018 → Aug 10 2018

Publication series

Name	IEEE Power and Energy Society General Meeting
Volume	2018-August
ISSN (Print)	1944-9925
ISSN (Electronic)	1944-9933

Conference

Conference	2018 IEEE Power and Energy Society General Meeting, PESGM 2018
Country/Territory	United States
City	Portland
Period	08/5/18 → 08/10/18

Access to Document

10.1109/PESGM.2018.8586654

Cite this

@inproceedings{3762f09039ab4304aa9b3361fce5575c,

title = "Competitive Market with Renewable Power Producers Achieves Asymptotic Social Efficiency",

abstract = "A price-making two-settlement power market in which both conventional generators and renewable power producers (RPPs) participate is studied. It is proved that the Nash Equilibrium (NE) of the market converges to the social optimum as the number of RPPs increases. As a result, social efficiency is asymptotically achieved with a simple market mechanism for integrating RPPs, without the need for an independent system operator (ISO) to perform a centralized stochastic optimization. The analytical derivation of the NE offers an elegant charac-terization of the market power of the competitive RPPs. The market outcomes predicted by the developed theoretical results are demonstrated by simulation studies.",

author = "Hossein Khazaei and Yue Zhao",

note = "Publisher Copyright: {\textcopyright} 2018 IEEE.; 2018 IEEE Power and Energy Society General Meeting, PESGM 2018 ; Conference date: 05-08-2018 Through 10-08-2018",

year = "2018",

month = dec,

day = "21",

doi = "10.1109/PESGM.2018.8586654",

language = "English",

series = "IEEE Power and Energy Society General Meeting",

publisher = "IEEE Computer Society",

booktitle = "2018 IEEE Power and Energy Society General Meeting, PESGM 2018",

}

Khazaei, H & Zhao, Y 2018, Competitive Market with Renewable Power Producers Achieves Asymptotic Social Efficiency. in 2018 IEEE Power and Energy Society General Meeting, PESGM 2018., 8586654, IEEE Power and Energy Society General Meeting, vol. 2018-August, IEEE Computer Society, 2018 IEEE Power and Energy Society General Meeting, PESGM 2018, Portland, United States, 08/5/18. https://doi.org/10.1109/PESGM.2018.8586654

Competitive Market with Renewable Power Producers Achieves Asymptotic Social Efficiency. / Khazaei, Hossein; Zhao, Yue.
2018 IEEE Power and Energy Society General Meeting, PESGM 2018. IEEE Computer Society, 2018. 8586654 (IEEE Power and Energy Society General Meeting; Vol. 2018-August).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - Competitive Market with Renewable Power Producers Achieves Asymptotic Social Efficiency

AU - Khazaei, Hossein

AU - Zhao, Yue

PY - 2018/12/21

Y1 - 2018/12/21

N2 - A price-making two-settlement power market in which both conventional generators and renewable power producers (RPPs) participate is studied. It is proved that the Nash Equilibrium (NE) of the market converges to the social optimum as the number of RPPs increases. As a result, social efficiency is asymptotically achieved with a simple market mechanism for integrating RPPs, without the need for an independent system operator (ISO) to perform a centralized stochastic optimization. The analytical derivation of the NE offers an elegant charac-terization of the market power of the competitive RPPs. The market outcomes predicted by the developed theoretical results are demonstrated by simulation studies.

AB - A price-making two-settlement power market in which both conventional generators and renewable power producers (RPPs) participate is studied. It is proved that the Nash Equilibrium (NE) of the market converges to the social optimum as the number of RPPs increases. As a result, social efficiency is asymptotically achieved with a simple market mechanism for integrating RPPs, without the need for an independent system operator (ISO) to perform a centralized stochastic optimization. The analytical derivation of the NE offers an elegant charac-terization of the market power of the competitive RPPs. The market outcomes predicted by the developed theoretical results are demonstrated by simulation studies.

UR - https://www.scopus.com/pages/publications/85060821294

U2 - 10.1109/PESGM.2018.8586654

DO - 10.1109/PESGM.2018.8586654

M3 - Conference contribution

AN - SCOPUS:85060821294

T3 - IEEE Power and Energy Society General Meeting

BT - 2018 IEEE Power and Energy Society General Meeting, PESGM 2018

PB - IEEE Computer Society

T2 - 2018 IEEE Power and Energy Society General Meeting, PESGM 2018

Y2 - 5 August 2018 through 10 August 2018

ER -

Competitive Market with Renewable Power Producers Achieves Asymptotic Social Efficiency

Abstract

Publication series

Conference

Access to Document

Other files and links

Fingerprint

Cite this