TR2016-095

Accelerating Convergence to Competitive Equilibrium in Electricity Markets


    •  Raghunathan, A.U., Curtis, F.E., Takaguchi, Y., Hashimoto, H., "Accelerating Convergence to Competitive Equilibrium in Electricity Markets", IEEE Power & Energy Society General Meeting (PES), DOI: 10.1109/​PESGM.2016.7741162, July 2016.
      BibTeX TR2016-095 PDF
      • @inproceedings{Raghunathan2016jul2,
      • author = {Raghunathan, Arvind and Curtis, Frank E. and Takaguchi, Yusuke and Hashimoto, Hiroyuki},
      • title = {Accelerating Convergence to Competitive Equilibrium in Electricity Markets},
      • booktitle = {IEEE Power \& Energy Society General Meeting (PES)},
      • year = 2016,
      • month = jul,
      • doi = {10.1109/PESGM.2016.7741162},
      • url = {https://www.merl.com/publications/TR2016-095}
      • }
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  • Research Area:

    Optimization

Abstract:

We present a single time-period decentralized market clearing model based on the DC power flow model. The electricity market we study consists of a set of Generation Companies (GenCos) and a set of Distribution System Operators (DSOs). We model the DSOs as a single node having deferrable loads. The Independent System Operator (ISO) determines the market clearing generation and demand levels by coordinating with the market participants (GenCos and DSOs). It is assumed that each market participant shares limited information with the ISO. We exploit the problem structure to obtain a decomposition of the market-clearing problem where the GenCos and DSOs are decoupled. We propose a novel semismooth Newton algorithm to compute the competitive equilibrium. Numerical experiments demonstrate that the algorithm can obtain several orders of magnitude speedup over a typical subgradient algorithm.