On electricity market equilibria with storage: Modeling, uniqueness, and a distributed ADMM

Grübel, Julia; Kleinert, Thomas; Krebs, Vanessa; Orlinskaya, Galina; Schewe, Lars; Schmidt, Martin; Thürauf, Johannes

doi:10.1016/j.cor.2019.104783

Cited by 17 publications

(22 citation statements)

References 53 publications

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“…Storage participation models vary across U.S. markets, although recent FERC 841 orders establish common requirements (Sakti et al 2018). From an implementation perspective, increased penetration of storage assets and VRE raises the possibility of multiple potential market equilibria (Grübel et al 2020;Schmalensee 2019). Grübel et al (2020) find that computation of market equilibria is much more challenging with storage because of the interlinkage of trading events over time, and develop computational methods to quickly solve such optimization problems using the alternating direction method of multipliers.…”

Section: Participation Modelsmentioning

confidence: 99%

“…From an implementation perspective, increased penetration of storage assets and VRE raises the possibility of multiple potential market equilibria (Grübel et al 2020;Schmalensee 2019). Grübel et al (2020) find that computation of market equilibria is much more challenging with storage because of the interlinkage of trading events over time, and develop computational methods to quickly solve such optimization problems using the alternating direction method of multipliers. More generally, current U.S. markets differ in how and if they manage intertemporal constraints for ES and demand-side resources.…”

Section: Participation Modelsmentioning

confidence: 99%

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Research Priorities and Opportunities in United States Wholesale Electricity Markets

Sun

Levin

Kwon

et al. 2021

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The power system is currently undergoing a number of changes, including a rapidly evolving resource mix, growth of distributed energy resources (DERs), more active consumer participation, increased deployment of energy storage and hybrid resources, and more advanced communication and control requirements. These changes in the power system present numerous technical, economic, implementation, and policy challenges and research opportunities for power system operators. To help address these challenges, a collaboration among five research institutions-Argonne National Laboratory,

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Section: Participation Modelsmentioning

confidence: 99%

Section: Participation Modelsmentioning

confidence: 99%

Research Priorities and Opportunities in United States Wholesale Electricity Markets

Sun

Levin

Kwon

et al. 2021

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“…Studies where equilibria of electricity markets are evaluated, taking into account peer-to-peer energy exchanges or the storage of energy by the operators, have also been analyzed [21,22]. A network of prosumers has been considered having price differentiation in their preferences and considering two cases where a centralized market design was used as a benchmark or a distributed peer-to-peer market design is developed [21].…”

Section: Literature Reviewmentioning

confidence: 99%

“…A network of prosumers has been considered having price differentiation in their preferences and considering two cases where a centralized market design was used as a benchmark or a distributed peer-to-peer market design is developed [21]. Discussions where other solutions for the peer-to-peer market design may exist and works related to the electricity storage have already been presented as a generalized Nash equilibrium for the problem, illustrating the approach for a three-node network and the IEEE 14-bus network [21,22]. The problem of electricity market equilibria with storage modeling was also analyzed in [22].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Discussions where other solutions for the peer-to-peer market design may exist and works related to the electricity storage have already been presented as a generalized Nash equilibrium for the problem, illustrating the approach for a three-node network and the IEEE 14-bus network [21,22]. The problem of electricity market equilibria with storage modeling was also analyzed in [22]. It is considered that the spot market trading of electricity includes different players like storage operators, producers, and consumers, where storage devices allow for shifting proceed electricity from one time period to a later one.…”

Section: Literature Reviewmentioning

confidence: 99%

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Finding Multiple Equilibria for Raiffa–Kalai–Smorodinsky and Nash Bargaining Equilibria in Electricity Markets: A Bilateral Contract Model

Garcia

Contreras

Macedo

et al. 2021

Designs

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In a deregulated market, energy can be exchanged like a commodity and the market agents including generators, distributors, and the end consumers can trade energy independently settling the price, volume, and the supply terms. Bilateral contracts (BCs) have been applied to hedge against price volatility in the electricity spot market. This work introduces a model to find all solutions for the equilibria implementing the Raiffa–Kalai–Smorodinski (RKS) and the Nash Bargaining Solution (NBS) approaches in an electricity market based on BCs. It is based on creating “holes” around an existing equilibrium within the feasibility set, yielding a new (smaller) feasibility set at each iteration. This research has two players: a generation company (GC) and an electricity supplier company (ESC), aiming to achieve the highest profit for each of them. The results present all possible RKS and NBS, in addition to showing all assigned energies for a case study at different time frames. The multiple equilibria solutions allow the ESC and the GC to apply different strategies knowing that they can still achieve an optimal solution.

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A classification scheme for local energy trading

2022

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The current trend towards more renewable and sustainable energy generation leads to an increased interest in new energy management systems and the concept of a smart grid. One important aspect of this is local energy trading, which is an extension of existing electricity markets by including prosumers, who are consumers also producing electricity. Prosumers having a surplus of energy may directly trade this surplus with other prosumers, who are currently in demand. In this paper, we present an overview of the literature in the area of local energy trading. In order to provide structure to the broad range of publications, we identify key characteristics, define the various settings, and cluster the considered literature along these characteristics. We identify three main research lines, each with a distinct setting and research question. We analyze and compare the settings, the used techniques, and the results and findings within each cluster and derive connections between the clusters. In addition, we identify important aspects, which up to now have to a large extent been neglected in the considered literature and highlight interesting research directions, and open problems for future work.

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On electricity market equilibria with storage: Modeling, uniqueness, and a distributed ADMM

Cited by 17 publications

References 53 publications

Research Priorities and Opportunities in United States Wholesale Electricity Markets

Research Priorities and Opportunities in United States Wholesale Electricity Markets

Finding Multiple Equilibria for Raiffa–Kalai–Smorodinsky and Nash Bargaining Equilibria in Electricity Markets: A Bilateral Contract Model

A classification scheme for local energy trading

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