April 20, 2012, Antonio Conejo, University of Castilla, La Mancha
Friday, April 20, 2012 at 3:00 PM
8 St. Mary’s Street, Room 203
Refreshments served at 2:45.
Antonio Conejo
University of Castilla, La Mancha
Pricing Non-Convexities in an Electricity Pool
Electricity pools are generally cleared through auctions that are conveniently formulated as mixed-integer linear programming problems. Since a mixed-integer linear programming problem is non-continuous and non-convex, marginal prices cannot be easily derived. However, to trade electricity, prices are needed. Thus, a relevant question arises: how to generate appropriate prices? This presentation addresses this important issue and proposes a primal-dual approach to derive efficient pool-clearing prices that support market outcomes in the sense that agents are willing to remain in the market. Such prices do not significantly deviate from the marginal prices obtained if integrality conditions are relaxed in the original mixed-integer linear programming problem. Two case studies illustrate the functioning of the proposed pricing scheme.
Antonio J. Conejo, full professor at the Universidad de Castilla-La Mancha, Spain, received the M.S. from MIT and the Ph.D. from the Royal Institute of Technology, Sweden. He has published over 125 papers in SCI journals and is the author or coauthor of books published by Springer, John Wiley, McGraw-Hill, and CRC. He has been the principal investigator of many research projects financed by public agencies and the power industry and has supervised 16 PhD theses. He is the Editor-in-Chief of the IEEE Transactions on Power Systems and an IEEE Fellow.
Hosting Professor: Michael Caramanis
Student Host: Justin Foster