Towards Optimal Demand-Side Bidding in Parallel Auctions for Time-Shiftable Electrical Loads

Towards Optimal Demand-Side Bidding in Parallel Auctions for Time-Shiftable Electrical Loads

Saur, R. (TU Delft Intelligent Electrical Power Grids; Centrum Wiskunde & Informatica (CWI))
la Poutré, J.A. (TU Delft Intelligent Electrical Power Grids; Centrum Wiskunde & Informatica (CWI))
Yorke-Smith, N. (TU Delft Algorithmics)

2020-07

Increasing electricity production from renewable energy sources has, by its fluctuating nature, created the need for more flexible demand side management. How to integrate flexible demand in the electricity system is an open research question. We consider the case of procuring the energy needs of a time-shiftable load through a set of simultaneous second price auctions. We derive a required condition for optimal bidding strategies. We then show the following results and bidding strategies under different market assumptions. For identical uniform auctions and multiple units of demand, we show that the global optimal strategy is to bid uniformly across all auctions. For non-identical auctions and multiple units, we provide a way to find solutions through a recursive approach and a non-linear solver. We show that our approach outperforms the literature under higher uncertainty conditions.

simultaneous auctions
demand side bidding
time-shiftable loads

http://resolver.tudelft.nl/uuid:7e160520-e32a-434a-90e9-0c50d446c6f1

IEEE, Piscataway

2021-01-23

978-1-7281-4965-3

2020 IEEE 18th International Conference on Industrial Informatics (INDIN): Proceedings

18th IEEE International Conference on Industrial Informatics (INDIN'20), 2020-07-01, Warwick, United Kingdom

Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

Institutional Repository

conference paper

© 2020 R. Saur, J.A. la Poutré, N. Yorke-Smith