Time-dependent electricity pricing using variable announcement horizons

Energy Informatics

Soumya Sen¹  Carlee Joe-Wong²  Philipp Artur Kienscherf³  Wolfgang Ketter⁴  John Collins⁵ 

[1] Carlson School of Management, University of Minnesota, Minneapolis, USA;Carnegie Mellon University, Pittsburgh, USA;Cologne Institute for Information Systems, University of Cologne, Cologne, Germany;Institute of Energy Economics at the University of Cologne, Cologne, Germany;Cologne Institute for Information Systems, University of Cologne, Cologne, Germany;Institute of Energy Economics at the University of Cologne, Cologne, Germany;Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands;University of Minnesota, Minneapolis, USA;

关键词: Dynamic pricing;    Smart grid;    Risk management;   

DOI  :  10.1186/s42162-020-00117-5

来源: Springer

【 摘 要 】

In the battle against climate change, electrification plays an increasingly large role in our society. The growing use of electricity networks requires advanced coordination mechanisms to avoid the tragedy of the commons. In this paper, we explore the effects of optimum time-dependent pricing (TDP) on supplier surplus within electricity markets, using a parameterized optimization model. Varying not only the prices themselves, but also their announcement horizon, we show how the suppliers’ optimal decision depends on risk aversion, forecasting quality, and end-user flexibility. The inclusion of procurement risk in our model shows that TDP can be beneficial for suppliers when they want to actively manage risk, even if expected profits are lower. At the same time, the shifting of end-user demand to low-cost times reduces the overall system cost, and potentially carbon emissions.

【 授权许可】

CC BY