An Integration Mechanism between Demand and Supply Side Management of Electricity Markets

Zixu Liu, Xiaojun Zeng and Fanlin Meng
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Zixu Liu: School of Computer Science, University of Manchester, Manchester M13 9PL, UK
Xiaojun Zeng: School of Computer Science, University of Manchester, Manchester M13 9PL, UK
Fanlin Meng: BRE Trust Center for Sustainable Engineering, Cardiff University, Cardiff CF24 3AA, UK

Energies, 2018, vol. 11, issue 12, 1-23

Abstract: One of the main challenges in the emerging smart grid is to jointly consider the demand and supply, which is also reflected in the wholesale market (supply side) and the retail market (demand side). When integrating the demand and supply side into one framework, the mechanism for determining the market clearing price has been changed. This is due to the demand variations in the demand side in response to the market clearing price and the change of generation costs in the supply side from the demand variation. In order to find the best balance between the supply and demand under the demand response management scheme, this paper proposes a new integrated supply and demand coordination mechanism for the electricity market and smart pricing methods for generator and retailers. Another important contribution of this paper is to develop an efficient algorithm to find the match equilibrium between the demand and supply sides in the new proposed mechanism. Experimental results demonstrate that the new mechanism can effectively handle unpredictable demand under dynamic retail pricing and support the ISO to dispatch the generation economically. It can also help in achieving the goals of dynamic pricing such as maximizing the profits for retailers.

Keywords: demand response management; smart grid; smart pricing; electricity market; supply management (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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