Optimal hierarchical allocation in deregulated electricity market under PSP auction mechanism

Zhongjing Ma, Yingying Cui

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

4 Citations (Scopus)

Abstract

In hierarchical electricity market, the retailers buy electricity from generation provider and then sell it to users. Retailers play an important role in the distribution channel by matching supply and demand, but they also potentially cause inefficiencies in electricity allocation. To induce an efficient allocation of electricity, we propose a novel hierarchical distributed method under PSP auction mechanism. Under this mechanism, each of players, either the generation provider or the retailers, obtains their electricity allocation through the PSP auction method by submitting a multi-dimensional bid profile, instead of telling their private cost or valuation function, then the retailers economically distribute the electricity, acquired in the PSP auction, among users. Moreover, the valuation function of retailers depends on the revenues that they sell the electricity to users. As a main result, in this paper we show that there exists an efficient Nash equilibrium (NE) for the underlying auction games.

Original languageEnglish
Title of host publication26th Chinese Control and Decision Conference, CCDC 2014
PublisherIEEE Computer Society
Pages2256-2261
Number of pages6
ISBN (Print)9781479937066
DOIs
Publication statusPublished - 2014
Event26th Chinese Control and Decision Conference, CCDC 2014 - Changsha, China
Duration: 31 May 20142 Jun 2014

Publication series

Name26th Chinese Control and Decision Conference, CCDC 2014

Conference

Conference26th Chinese Control and Decision Conference, CCDC 2014
Country/TerritoryChina
CityChangsha
Period31/05/142/06/14

Keywords

  • Deregulated electricity market
  • Efficient allocation
  • Hierarchical allication
  • Nash equilibrium
  • PSP auction mechanism

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Cite this

Ma, Z., & Cui, Y. (2014). Optimal hierarchical allocation in deregulated electricity market under PSP auction mechanism. In 26th Chinese Control and Decision Conference, CCDC 2014 (pp. 2256-2261). Article 6852545 (26th Chinese Control and Decision Conference, CCDC 2014). IEEE Computer Society. https://doi.org/10.1109/CCDC.2014.6852545