Real-time pricing leading to optimal operation under distributed decision makings

Kenji Hirata, João P. Hespanha, Kenko Uchida

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    15 Citations (Scopus)

    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 languageEnglish
    Title of host publicationProceedings of the American Control Conference
    PublisherInstitute of Electrical and Electronics Engineers Inc.
    Pages1925-1932
    Number of pages8
    ISBN (Print)9781479932726
    DOIs
    Publication statusPublished - 2014
    Event2014 American Control Conference, ACC 2014 - Portland, OR
    Duration: 2014 Jun 42014 Jun 6

    Other

    Other2014 American Control Conference, ACC 2014
    CityPortland, OR
    Period14/6/414/6/6

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    Keywords

    • Optimal control
    • Output regulation
    • Power systems

    ASJC Scopus subject areas

    • Electrical and Electronic Engineering

    Cite this

    Hirata, K., Hespanha, J. P., & Uchida, K. (2014). Real-time pricing leading to optimal operation under distributed decision makings. In Proceedings of the American Control Conference (pp. 1925-1932). [6858655] Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/ACC.2014.6858655