Continuous-Time Commodity Model of Electricity with Generation Capacity Constrains

Continuous-Time Commodity Model of Electricity with Generation Capacity Constrains

연구 분야: Software Development

학회: 2021 IEEE Power & Energy Society General Meeting (PESGM)

In the context of large-scale integration of renewable energy, values of electricity commodity become increasingly complicated and the electricity market pricing theory needs to be updated. In particular, it is necessary to consider the time dynamics of power (especially flexibility) from different types of power sources and the time continuity of power generation becomes a crucial consideration. Based on the continuous-time commodity model of electricity markets that has been proposed, this paper further considers more complicated situations. First, this paper solves two different pricing methods (namely spot pricing and load duration pricing) and obtains the market equilibria. Secondly, this paper considers that the generators' outputs are limited by the capacity constraints. The market optimization models under the spot pricing and load duration pricing mechanisms are established with the Riemann and Lebesgue integrals respectively, and the functional optimization models are solved by the Euler-Lagrange equations. At the same time, by combining mathematical theory such as variational method, Lagrangian multiplier method, implicit function theorem, and ordinary differential equation, etc., the feasibility and rationality of pricing methods with the continuous-time commodity model are deduced. The simulation results show that, compared with the market optimization model under spot pricing, the market optimization model based on the load duration pricing method can not only reduce the total electricity purchasing cost, but also make the profit distribution among the power plants more fairly.