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Do We Need to Implement Multi-Interval Real-Time Markets?
Australian Competit & Consumer Commiss, Sydney, NSW, Australia..
KTH, School of Electrical Engineering and Computer Science (EECS), Electrical Engineering, Electric Power and Energy Systems.ORCID iD: 0000-0002-9998-9773
2022 (English)In: Energy Journal, ISSN 0195-6574, E-ISSN 1944-9089, Vol. 43, no 2, p. 111-132Article in journal (Refereed) Published
Abstract [en]

Many market-based power systems have implemented a form of 'look-ahead dispatch' which simultaneously solves for the optimal dispatch and prices over several intervals into the future. A few papers have pointed out that the dispatch outcomes which emerge from look-ahead dispatch may not be time consistent. We emphasise that this time inconsistency is not inherent in look-ahead dispatch but is a consequence of the assumption of linear cost and utility functions, which is arguably a special case. Various augmentations to the dispatch process to resolve the time inconsistency problem have been proposed, but these augmentations suffer from the drawback that they do not allow the power system to efficiently adjust to new information. We query whether it is necessary to implement multi-interval real-time markets. We show how under certain assumptions, a sequence of oneshot dispatch processes will achieve the efficient outcome.

Place, publisher, year, edition, pages
International Association for Energy Economics (IAEE) , 2022. Vol. 43, no 2, p. 111-132
Keywords [en]
Look-ahead dispatch, Pricing, Real-time market, Dual degeneracy
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
URN: urn:nbn:se:kth:diva-310026DOI: 10.5547/01956574.43.2.dbigISI: 000758716200006Scopus ID: 2-s2.0-85125138534OAI: oai:DiVA.org:kth-310026DiVA, id: diva2:1646386
Note

QC 20221108

Available from: 2022-03-22 Created: 2022-03-22 Last updated: 2022-11-08Bibliographically approved

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Hesamzadeh, Mohammad Reza

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
  • html
  • text
  • asciidoc
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