Distributed power supply-demand management based on negawatt trading with energy storage system

This paper presents a distributed power supply-demand management method based on negawatt trading including charge or discharge power from energy storage systems. In the negawatt trading, power consumers reduce their own power demand and receive monetary reward from the market operator. 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 using some future power supply information in this paper. We then show a novel market algorithm to solve this problem in a distributed manner through market trading among the market operator and consumers. Finally, we verify the effectiveness of our proposed method with numerical simulation results.