In this paper, we discuss the demand side management (DSM) problem: how to incentivize a consumer to equalize the load during the day through price-dependent demand. Traditionally, the retail market offers several electricity payment schemes. A scheme is effective when the different tariffs satisfy different consumers. At the same time, the existing and generally accepted retail pricing schemes can lead to an "adverse selection" problem when all consumers choose the same price, thereby, reducing the possible general welfare. We propose an optimal design of pricing mechanisms, taking into account the interests of the electricity supplier and different types of consumers. The results of our work are that the optimal mechanism is implemented simultaneously for several periods, including the case when the ratio of types of consumers in periods changes. In addition, the mechanism proposed by us, in contrast to the studies of other researchers, provides an equilibrium close to the socially optimal maximum. We describe the implementation algorithm of the mechanism and provide examples of its action in the electric power system with different types and numbers of consumers.
We suggest a new approach to optimization of the adequacy of electric power system under market conditions which involve competition of various interests of market agents. This feature makes unsuitable of traditional methods for optimization of the adequacy of electric power system. The reliability analysis of the variants of development of electric power system is carried out on the base of the Monte Carlo method. The profit of generating companies is calculated by the obtained reliability indexes which characterize some variant of electric power system development. The investigated variant of development of electric power system is effective if all generating companies choose a sufficient level of reliability that satisfies the consumer. The results of experimental research are presented in the paper.
We present a new model of adequacy optimization of electric power systems under market conditions in the article. Optimization is realized by a criteria of maximum of social welfare. Social welfare includes profits of generating companies according penalties of unreliable electricity supply, consumer surplus, costs for development and servicing of electricity grids. Adequacy analysis of variants of development of electric power system is based on multiple estimation of electricity shortage in a random hour of system work. We analyze system work in each of a random hour in two stages. For the first stage we define equilibrium electricity demand in each system node and equilibrium price of electricity according to Cournot model. For the next stage failures of power generating equipment and transmission lines are simulated. We also estimate of electricity shortage in a current hour on the second stage. Reliability indexes and profits of generating companies are formed after a whole cycle of computations. Values of a profit are depended on reliability of electricity supply. Simulation of random values is carried out by the Monte Carlo method.
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