Article: Spot pricing when Lagrange multipliers are not unique
| Title | Spot pricing when Lagrange multipliers are not unique | ||||||
|---|---|---|---|---|---|---|---|
| Authors | Feng, D3 Xu, Z4 Zhong, J2 Østergaard, J1 | ||||||
| Keywords | Double-Sided Auction Duality Nodal Price Spot Pricing | ||||||
| Issue Date | 2012 | ||||||
| Publisher | I E E E. The Journal's web site is located at http://ieeexplore.ieee.org/xpl/RecentIssue.jsp?punumber=59 | ||||||
| Citation | Ieee Transactions On Power Systems, 2012, v. 27 n. 1, p. 314-322 [How to Cite?] DOI: http://dx.doi.org/10.1109/TPWRS.2011.2159629 | ||||||
| Abstract | Classical spot pricing theory is based on multipliers of the primal problem of an optimal market dispatch, i.e., the solution of the dual problem. However, the dual problem of market dispatch may yield multiple solutions. In these circumstances, spot pricing or any standard pricing practice based on multipliers cannot generate a unique clearing price. Although such situations are rare, they can cause significant uncertainties and complexities in market dispatch. In practice, this situation is solved through simple empirical methods, which may cause additional operations or biased allocation. Based on a strict extension of the principles of spot pricing and surplus allocation, we propose a new pricing methodology that can yield unique, impartial, and robust solution. The new method has been analyzed and compared with other pricing approaches in accordance with spot pricing theory. Case studies support the results of the theoretical analysis, and further demonstrate that the method performs effectively in both uniform-pricing and nodal-pricing markets. © 2006 IEEE. | ||||||
| ISSN | 0885-8950 2011 Impact Factor: 2.678 2011 SCImago Journal Rankings: 0.082 | ||||||
| DOI | http://dx.doi.org/10.1109/TPWRS.2011.2159629 | ||||||
| ISI Accession Number ID | WOS:000299506300033
Funding Information: This work was supported in part by the National Natural Science Foundation of China (NSFC-51007058) and in part by Hans Christian Orsted Postdoctoral Funding. Paper no. TPWRS-00972-2010. | ||||||
| References | References in Scopus |
| dc.contributor.author | Feng, D | ||||||
|---|---|---|---|---|---|---|---|
| dc.contributor.author | Xu, Z | ||||||
| dc.contributor.author | Zhong, J | ||||||
| dc.contributor.author | Østergaard, J | ||||||
| dc.date.accessioned | 2012-08-08T08:35:01Z | ||||||
| dc.date.available | 2012-08-08T08:35:01Z | ||||||
| dc.date.issued | 2012 | ||||||
| dc.description.abstract | Classical spot pricing theory is based on multipliers of the primal problem of an optimal market dispatch, i.e., the solution of the dual problem. However, the dual problem of market dispatch may yield multiple solutions. In these circumstances, spot pricing or any standard pricing practice based on multipliers cannot generate a unique clearing price. Although such situations are rare, they can cause significant uncertainties and complexities in market dispatch. In practice, this situation is solved through simple empirical methods, which may cause additional operations or biased allocation. Based on a strict extension of the principles of spot pricing and surplus allocation, we propose a new pricing methodology that can yield unique, impartial, and robust solution. The new method has been analyzed and compared with other pricing approaches in accordance with spot pricing theory. Case studies support the results of the theoretical analysis, and further demonstrate that the method performs effectively in both uniform-pricing and nodal-pricing markets. © 2006 IEEE. | ||||||
| dc.description.nature | published_or_final_version | ||||||
| dc.identifier.citation | Ieee Transactions On Power Systems, 2012, v. 27 n. 1, p. 314-322 [How to Cite?] DOI: http://dx.doi.org/10.1109/TPWRS.2011.2159629 | ||||||
| dc.identifier.doi | http://dx.doi.org/10.1109/TPWRS.2011.2159629 | ||||||
| dc.identifier.epage | 322 | ||||||
| dc.identifier.hkuros | 201938 | ||||||
| dc.identifier.isi | WOS:000299506300033
Funding Information: This work was supported in part by the National Natural Science Foundation of China (NSFC-51007058) and in part by Hans Christian Orsted Postdoctoral Funding. Paper no. TPWRS-00972-2010. | ||||||
| dc.identifier.issn | 0885-8950 2011 Impact Factor: 2.678 2011 SCImago Journal Rankings: 0.082 | ||||||
| dc.identifier.issue | 1 | ||||||
| dc.identifier.scopus | eid_2-s2.0-84856255515 | ||||||
| dc.identifier.spage | 314 | ||||||
| dc.identifier.uri | http://hdl.handle.net/10722/155725 | ||||||
| dc.identifier.volume | 27 | ||||||
| dc.language | eng | ||||||
| dc.publisher | I E E E. The Journal's web site is located at http://ieeexplore.ieee.org/xpl/RecentIssue.jsp?punumber=59 | ||||||
| dc.publisher.place | United States | ||||||
| dc.relation.ispartof | IEEE Transactions on Power Systems | ||||||
| dc.relation.references | References in Scopus | ||||||
| dc.rights | Creative Commons: Attribution 3.0 Hong Kong License | ||||||
| dc.subject | Double-Sided Auction | ||||||
| dc.subject | Duality | ||||||
| dc.subject | Nodal Price | ||||||
| dc.subject | Spot Pricing | ||||||
| dc.title | Spot pricing when Lagrange multipliers are not unique | ||||||
| dc.type | Article |
Author Affiliations
- Danmarks Tekniske Universitet
- The University of Hong Kong
- Shanghai Jiaotong University
- Hong Kong Polytechnic University