Smart Grid Seminar

In this work, we employ a game-theoretic framework to investigate how to design efficient market mechanisms in the context of the economic dispatch problem. Depending on different bid formats and pricing schemes, we study the equilibrium outcomes with strategic generators under three mechanisms: the locational marginal pricing (LMP) mechanism based on supply functions, the LMP mechanism based on Cournot competition, and the proposed power network second price mechanism. Next, we design mechanisms for a dynamic economic dispatch problem. The major challenge is that each generator has its own energy storage system, while the independent system operator is unaware of the operation of the storages. Lastly, we present a stochastic resource auction paradigm to address how wind power generators can participate in the wholesale electricity market.