Effect of inter-temporal factors on the real time pricing of electricity

A rigorous theoretical framework for the solution of the price formation and optimal dispatch problems taking into account intertemporal dependence of demand under spot and dynamic tariffs is presented. The case in which a common tariff is to be applied to all customers is examined. The difference in system response for spot and day-ahead dynamic tariffs is illustrated. Simulation examples of a variety of event types are provided.<
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