Advancement: Electricity Markets in Presence of Prosumers

Speaker Name: 
Sepehr Ramyar
Speaker Title: 
PhD Student (Advisor: Yihsu Chen)
Speaker Organization: 
Technology & Information Management
Start Time: 
Thursday, December 6, 2018 - 11:00am
End Time: 
Thursday, December 6, 2018 - 1:00pm
Location: 
Engineering 2, Room 215
Organizer: 
Yihsu Chen

Abstract:  The electric power industry is undergoing fundamental transformations. We see the advent of prosumers, capable of generating as well as consuming electricity, interacting with the market beyond what was possible for conventional consumers. This paradigm shift towards a more engaged demand-side provides opportunities for efficiency as well as manipulation. As more distributed energy resources, such as renewables, are deployed, less conventional generation is required. However, an increased presence of prosumers would lead to asymmetric information situations that could undermine efficiency. Therefore, a careful analysis of how prosumers can impact the outcomes of power markets along with proposing mechanisms for more efficient outcomes is the subject of the proposed research.

The proposed research is divided into two main themes. The first theme involves investigating the impact of prosumers on wholesale power markets. In particular, endogenous wholesale price formation will be studied under different strategic assumptions regarding the prosumer. The prosumer behavior under price-taker, Cournot, and Stackelberg formulation will be analyzed. The second theme involves designing mechanisms for participation of distributed energy resources in the market. This will involve identifying and proposing appropriate mechanisms with desirable properties that are capable of eliminating the information asymmetries and inducing true value reported by participating resources. In practice, this research will provide a toolset to evaluate alternative policies and market designs given the paradigm shift towards an increased presence of prosumers in the power market.