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Article: Spot pricing when Lagrange multipliers are not unique
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TitleSpot pricing when Lagrange multipliers are not unique
 
AuthorsFeng, D3
Xu, Z4
Zhong, J2
Østergaard, J1
 
KeywordsDouble-Sided Auction
Duality
Nodal Price
Spot Pricing
 
Issue Date2012
 
PublisherI E E E. The Journal's web site is located at http://ieeexplore.ieee.org/xpl/RecentIssue.jsp?punumber=59
 
CitationIeee 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
 
AbstractClassical 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.
 
ISSN0885-8950
2012 Impact Factor: 2.921
2012 SCImago Journal Rankings: 2.837
 
DOIhttp://dx.doi.org/10.1109/TPWRS.2011.2159629
 
ISI Accession Number IDWOS:000299506300033
Funding AgencyGrant Number
National Natural Science Foundation of ChinaNSFC-51007058
Hans Christian Orsted Postdoctoral Funding
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.

 
ReferencesReferences in Scopus
 
DC FieldValue
dc.contributor.authorFeng, D
 
dc.contributor.authorXu, Z
 
dc.contributor.authorZhong, J
 
dc.contributor.authorØstergaard, J
 
dc.date.accessioned2012-08-08T08:35:01Z
 
dc.date.available2012-08-08T08:35:01Z
 
dc.date.issued2012
 
dc.description.abstractClassical 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.naturepublished_or_final_version
 
dc.identifier.citationIeee 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.doihttp://dx.doi.org/10.1109/TPWRS.2011.2159629
 
dc.identifier.epage322
 
dc.identifier.hkuros201938
 
dc.identifier.isiWOS:000299506300033
Funding AgencyGrant Number
National Natural Science Foundation of ChinaNSFC-51007058
Hans Christian Orsted Postdoctoral Funding
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.issn0885-8950
2012 Impact Factor: 2.921
2012 SCImago Journal Rankings: 2.837
 
dc.identifier.issue1
 
dc.identifier.scopuseid_2-s2.0-84856255515
 
dc.identifier.spage314
 
dc.identifier.urihttp://hdl.handle.net/10722/155725
 
dc.identifier.volume27
 
dc.languageeng
 
dc.publisherI E E E. The Journal's web site is located at http://ieeexplore.ieee.org/xpl/RecentIssue.jsp?punumber=59
 
dc.publisher.placeUnited States
 
dc.relation.ispartofIEEE Transactions on Power Systems
 
dc.relation.referencesReferences in Scopus
 
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License
 
dc.subjectDouble-Sided Auction
 
dc.subjectDuality
 
dc.subjectNodal Price
 
dc.subjectSpot Pricing
 
dc.titleSpot pricing when Lagrange multipliers are not unique
 
dc.typeArticle
 
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Author Affiliations
  1. Danmarks Tekniske Universitet
  2. The University of Hong Kong
  3. Shanghai Jiaotong University
  4. Hong Kong Polytechnic University