Abstract
This paper investigates the optimal regulation problem with the steady-state constraints under distributed decision makings, where each agent is allowed to determine its own optimal set-point according to an individual profit. On the other hand, the utility, which corresponds to an individual public commission, tries to realize a socially optimal solution that fulfills steady-state constraints. In order to align the individual decision making of each agent with the socially optimal solution, the utility is allowed to provide additional price, which corresponds to tax or subsidy for the agent. This paper proposes a real-time pricing strategy of the utility. The proposed pricing strategy is heuristic, but we show that the resulting closed-loop system is stable, if the step size parameter in the real-time pricing strategy is sufficiently small, and realizes tracking to the socially optimal solution.
| Original language | English |
|---|---|
| Title of host publication | Proceedings of the American Control Conference |
| Publisher | Institute of Electrical and Electronics Engineers Inc. |
| Pages | 1925-1932 |
| Number of pages | 8 |
| ISBN (Print) | 9781479932726 |
| DOIs | |
| Publication status | Published - 2014 |
| Event | 2014 American Control Conference, ACC 2014 - Portland, OR Duration: 2014 Jun 4 → 2014 Jun 6 |
Other
| Other | 2014 American Control Conference, ACC 2014 |
|---|---|
| City | Portland, OR |
| Period | 14/6/4 → 14/6/6 |
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Keywords
- Optimal control
- Output regulation
- Power systems
ASJC Scopus subject areas
- Electrical and Electronic Engineering
Cite this
Real-time pricing leading to optimal operation under distributed decision makings. / Hirata, Kenji; Hespanha, João P.; Uchida, Kenko.
Proceedings of the American Control Conference. Institute of Electrical and Electronics Engineers Inc., 2014. p. 1925-1932 6858655.Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
}
TY - GEN
T1 - Real-time pricing leading to optimal operation under distributed decision makings
AU - Hirata, Kenji
AU - Hespanha, João P.
AU - Uchida, Kenko
PY - 2014
Y1 - 2014
N2 - This paper investigates the optimal regulation problem with the steady-state constraints under distributed decision makings, where each agent is allowed to determine its own optimal set-point according to an individual profit. On the other hand, the utility, which corresponds to an individual public commission, tries to realize a socially optimal solution that fulfills steady-state constraints. In order to align the individual decision making of each agent with the socially optimal solution, the utility is allowed to provide additional price, which corresponds to tax or subsidy for the agent. This paper proposes a real-time pricing strategy of the utility. The proposed pricing strategy is heuristic, but we show that the resulting closed-loop system is stable, if the step size parameter in the real-time pricing strategy is sufficiently small, and realizes tracking to the socially optimal solution.
AB - This paper investigates the optimal regulation problem with the steady-state constraints under distributed decision makings, where each agent is allowed to determine its own optimal set-point according to an individual profit. On the other hand, the utility, which corresponds to an individual public commission, tries to realize a socially optimal solution that fulfills steady-state constraints. In order to align the individual decision making of each agent with the socially optimal solution, the utility is allowed to provide additional price, which corresponds to tax or subsidy for the agent. This paper proposes a real-time pricing strategy of the utility. The proposed pricing strategy is heuristic, but we show that the resulting closed-loop system is stable, if the step size parameter in the real-time pricing strategy is sufficiently small, and realizes tracking to the socially optimal solution.
KW - Optimal control
KW - Output regulation
KW - Power systems
UR - http://www.scopus.com/inward/record.url?scp=84905674484&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84905674484&partnerID=8YFLogxK
U2 - 10.1109/ACC.2014.6858655
DO - 10.1109/ACC.2014.6858655
M3 - Conference contribution
AN - SCOPUS:84905674484
SN - 9781479932726
SP - 1925
EP - 1932
BT - Proceedings of the American Control Conference
PB - Institute of Electrical and Electronics Engineers Inc.
ER -