Competitive equilibria for stochastic dynamic markets
Abstract:
We are moving towards a radical transformation of our energy systems. The success of the new paradigm created by the Smart Grid vision will require not only the creation and integration of new technologies into the grid, but also the redesign of its coupled market structures. Economic models able to capture the new physical reality are a first requirement for the design of a reliable, and "smart" electrical grid.
In this talk, we focus on the integration of wind energy resources in a multi-settlement electricity market. Under standard assumptions of competitive markets, we study the dynamic competitive equilibrium for a stochastic market model, and obtain closed form expressions for the supplier and consumer surpluses. Numerical results based on these formulae show that the value of wind generation to consumers falls dramatically with volatility.
Several research questions are presented - their solution will require collaboration among researchers in economics, power and energy systems, and decision and control.
Based on the recent papers:
* A Control Theorist's Perspective on Dynamic Competitive Equilibria in Electricity Markets
https://netfiles.uiuc.edu/meyn/www/spm_files/MarketsIFAC2011/MarketsIFAC2011.html
* The Value of Volatile Resources in Electricity Markets
https://netfiles.uiuc.edu/meyn/www/spm_files/wind2010/Wind10.html
Joint with with ECE graduate students, A. Kowli, M. Negrete-Pincetic, E.Shafieepoorfard, and G. Wang.