Real-Time Pricing with Uncertain and Heterogeneous Consumer Preferences Conference Paper

abstract

• 2015 American Automatic Control Council. Consumer demand profiles and fluctuating renewable power generation are two main sources of uncertainty in matching demand and supply. This paper proposes a model of the electricity market that captures the uncertainties on both, the operator and the user side. The system operator (SO) implements a temporal linear pricing strategy that depends on real-time demand and renewable generation in the considered period combining Real-Time Pricing with Time-of-Use Pricing. The announced pricing strategy sets up a Bayesian game among the users with unknown, heterogeneous and correlated consumption preferences. The explicit characterization of the optimal selfish user behavior using the Bayesian Nash equilibrium solution concept allows the SO to derive pricing policies that influence demand to serve practical objectives such as minimizing peak-to-average ratio or attaining a desired rate of return while at the same time hedging renewable generation uncertainty.

name of conference

• 2015 American Control Conference (ACC)

authors

• Eksin, Ceyhun

published proceedings

• 2015 AMERICAN CONTROL CONFERENCE (ACC)

author list (cited authors)

• Eksin, C., Delic, H., & Ribeiro, A.

citation count

• 1

complete list of authors

• Eksin, Ceyhun||Delic, Hakan||Ribeiro, Alejandro

publication date

• July 2015

publisher

• Institute of Electrical and Electronics Engineers (IEEE)  Publisher

published in

• Proceedings of the ... American Control Conference. American Control Conference  Journal

keywords

• 13 Climate Action
• 7 Affordable And Clean Energy

Digital Object Identifier (DOI)

• 10.1109/acc.2015.7172231

International Standard Book Number (ISBN) 13

• 9781479986842

start page

• 5692

end page

• 5699

volume

• 2015-July

URL

• http://dx.doi.org/10.1109/acc.2015.7172231

user-defined tag

• 13 Climate Action
• 7 Affordable and Clean Energy