Integrated demand and supply side pricing optimization schemes for electricity market

Abstract

It is widely agreed that an increased communication among different groups (generators, retailers and customers) in electricity market would produce benefit not only for a single group but also for the market as a whole. This paper investigates and develops integrated pricing optimization schemes and coordination mechanisms for the electricity market which considers the supply and demand within one framework. In this framework, generators, retailers and customers aim to maximize their own benefits. Simulation results confirm that every group achieves their objectives in the designed market. In order to ensure the fair distribution of cost and benefit, and maximize the social welfare in the market, the Independent System Operator coordinates and balances these conflict goals using proposed mechanisms.