Distributed Optimal Power Management via Negawatt Trading in Real-Time Electricity Market

This paper presents a distributed optimal power supply-demand management method by using negawatt trading in a real-time electricity market. In the negawatt trading, power consumers reduce their own power demand and receive monetary reward from the market operator. This paper discusses a power adjustment method via negawatt trading by including charge or discharge power from energy storage systems. In order to derive appropriate electricity incentive prices for consumers and to use energy storage systems in power grids efficiently, we deal with a power adjustment problem by using some future power supply information from generators. We then show a novel market algorithm to solve this problem in a distributed manner through market trading. Finally, numerical simulation results illustrate the effectiveness of our proposed method.