### Abstract

We consider a dynamic game model of power networks with generators and/or consumers, called agents, and one public commission, called utility; a game with a prescribed dynamic mechanism is performed such that each agent decides a private control to minimize its own cost functional, and the utility manages information transmissions between the utility and agents and decides command signals, called prices, to minimize a public cost functional. We discuss designs of the mechanism that integrates selfish and strategic determinations of private controls by the agents into the optimal public controls that rational agents can accept. The model considered in this paper is the linear models of power networks, which is a special case of the model so-called average system frequency models, but we also include white Gaussian disturbances in each dynamic model of the agents in order to take account into the stochastic nature of renewable resources. Assuming that each private cost functional as well as the public cost functional is quadratic, we derive explicit formulas of the command signalling scheme, i.e., pricing scheme, and the incentive cost, inspired by the pivot function in the mechanism design theory literate from economics, that characterize our mechanism design in both formulations of the fixed horizon control and the receding horizon control cases.

Original language | English |
---|---|

Title of host publication | Proceedings of the IEEE International Conference on Control Applications |

Publisher | Institute of Electrical and Electronics Engineers Inc. |

Pages | 495-500 |

Number of pages | 6 |

ISBN (Print) | 9781479915590 |

DOIs | |

Publication status | Published - 2013 |

Event | 2013 IEEE International Conference on Control Applications, CCA 2013 - Hyderabad Duration: 2013 Aug 28 → 2013 Aug 30 |

### Other

Other | 2013 IEEE International Conference on Control Applications, CCA 2013 |
---|---|

City | Hyderabad |

Period | 13/8/28 → 13/8/30 |

### Fingerprint

### ASJC Scopus subject areas

- Control and Systems Engineering
- Computer Science Applications
- Mathematics(all)

### Cite this

*Proceedings of the IEEE International Conference on Control Applications*(pp. 495-500). [6662798] Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/CCA.2013.6662798

**Real time pricing and pivot mechanism for LQG power networks.** / Okajima, Yusuke; Murao, Toshiyuki; Hirata, Kenji; Uchida, Kenko.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

*Proceedings of the IEEE International Conference on Control Applications.*, 6662798, Institute of Electrical and Electronics Engineers Inc., pp. 495-500, 2013 IEEE International Conference on Control Applications, CCA 2013, Hyderabad, 13/8/28. https://doi.org/10.1109/CCA.2013.6662798

}

TY - GEN

T1 - Real time pricing and pivot mechanism for LQG power networks

AU - Okajima, Yusuke

AU - Murao, Toshiyuki

AU - Hirata, Kenji

AU - Uchida, Kenko

PY - 2013

Y1 - 2013

N2 - We consider a dynamic game model of power networks with generators and/or consumers, called agents, and one public commission, called utility; a game with a prescribed dynamic mechanism is performed such that each agent decides a private control to minimize its own cost functional, and the utility manages information transmissions between the utility and agents and decides command signals, called prices, to minimize a public cost functional. We discuss designs of the mechanism that integrates selfish and strategic determinations of private controls by the agents into the optimal public controls that rational agents can accept. The model considered in this paper is the linear models of power networks, which is a special case of the model so-called average system frequency models, but we also include white Gaussian disturbances in each dynamic model of the agents in order to take account into the stochastic nature of renewable resources. Assuming that each private cost functional as well as the public cost functional is quadratic, we derive explicit formulas of the command signalling scheme, i.e., pricing scheme, and the incentive cost, inspired by the pivot function in the mechanism design theory literate from economics, that characterize our mechanism design in both formulations of the fixed horizon control and the receding horizon control cases.

AB - We consider a dynamic game model of power networks with generators and/or consumers, called agents, and one public commission, called utility; a game with a prescribed dynamic mechanism is performed such that each agent decides a private control to minimize its own cost functional, and the utility manages information transmissions between the utility and agents and decides command signals, called prices, to minimize a public cost functional. We discuss designs of the mechanism that integrates selfish and strategic determinations of private controls by the agents into the optimal public controls that rational agents can accept. The model considered in this paper is the linear models of power networks, which is a special case of the model so-called average system frequency models, but we also include white Gaussian disturbances in each dynamic model of the agents in order to take account into the stochastic nature of renewable resources. Assuming that each private cost functional as well as the public cost functional is quadratic, we derive explicit formulas of the command signalling scheme, i.e., pricing scheme, and the incentive cost, inspired by the pivot function in the mechanism design theory literate from economics, that characterize our mechanism design in both formulations of the fixed horizon control and the receding horizon control cases.

UR - http://www.scopus.com/inward/record.url?scp=84902265240&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84902265240&partnerID=8YFLogxK

U2 - 10.1109/CCA.2013.6662798

DO - 10.1109/CCA.2013.6662798

M3 - Conference contribution

AN - SCOPUS:84902265240

SN - 9781479915590

SP - 495

EP - 500

BT - Proceedings of the IEEE International Conference on Control Applications

PB - Institute of Electrical and Electronics Engineers Inc.

ER -