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Traditionally, the electric distribution system operates with uniform energy prices across all system nodes. However, as the adoption of distributed energy resources (DERs) propels a shift from passive to active distribution network (ADN)…

Systems and Control · Electrical Eng. & Systems 2023-11-21 Xiaofei Wang , Fangxing Li , Linquan Bai , Xin Fang

This paper presents a Reinforcement Learning (RL) based energy market for a prosumer dominated microgrid. The proposed market model facilitates a real-time and demanddependent dynamic pricing environment, which reduces grid costs and…

Systems and Control · Electrical Eng. & Systems 2020-09-24 Arman Ghasemi , Amin Shojaeighadikolaei , Kailani Jones , Morteza Hashemi , Alexandru G. Bardas , Reza Ahmadi

The implementation of electricity markets based on locational marginal pricing in a multi-settlement process has allowed wholesale competition, with pricing mechanisms that incentivize the optimal allocation of generation, transmission, and…

Systems and Control · Electrical Eng. & Systems 2020-12-29 Veronica R. Bosquezfoti , Andrew L. Liu

Distribution locational marginal pricing (DLMP) can adversely affect users in a grid-constrained transactive distribution system market (DSM) that are at a distance away from the substation, requiring longer paths to connect to the…

Signal Processing · Electrical Eng. & Systems 2019-05-16 Ahmad Khaled Zarabie , Sanjoy Das , Mohammed Nazif Faqiry

Large deployment of distribute energy resources and the increasing awareness of end-users towards their energy procurement are challenging current practices of electricity markets. A change of paradigm, from a top-down hierarchical approach…

Optimization and Control · Mathematics 2020-09-18 Fabio Moret , Andrea Tosatto , Thomas Baroche , Pierre Pinson

A linear function submission-based double-auction (LFS-DA) mechanism for a regional electricity network is proposed in this paper. Each agent in the network is equipped with a battery and a generator. Each agent simultaneously becomes a…

Systems and Control · Computer Science 2023-01-18 Tadahiro Taniguchi , Koki Kawasaki , Yoshiro Fukui , Tomohiro Takata , Shiro Yano

Introduction of market mechanisms in distribution systems is currently subject to extensive studies. One of the challenges facing Distribution Market Operators (DMOs) is to implement a fair and economically efficient pricing mechanism that…

Systems and Control · Computer Science 2017-02-24 Sina Parhizi , Alireza Majzoobi , Amin Khodaei

In societal-scale infrastructures, such as electric grids or transportation networks, pricing mechanisms are often used as a way to shape users' demand in order to lower operating costs and improve reliability. Existing approaches to…

Systems and Control · Electrical Eng. & Systems 2023-08-01 Spencer Hutchinson , Berkay Turan , Mahnoosh Alizadeh

This paper introduces a model for coordinating prosumers with heterogeneous distributed energy resources (DERs), participating in the local energy market (LEM) that interacts with the market-clearing entity. The proposed LEM scheme utilizes…

With the rapid development of distributed energy resources, increasing number of residential and commercial users have been switched from pure electricity consumers to prosumers that can both consume and produce energy. To properly manage…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-09-15 Bing Liu , Furan Xie , Li Chai

Recent innovations in Information and Communication Technologies (ICT) provide new opportunities and challenges for integration of distributed energy resources (DERs) into the energy supply system as active market players. By increasing…

Optimization and Control · Mathematics 2019-08-13 Mohsen Khorasany , Yateendra Mishra , Gerard Ledwich

Users can now give back energies to the grid using distributed resources. Proper incentive mechanisms are required for such users, also known as prosumers, in order to maximize the sell-back amount while maintaining the retailer's profit.…

Optimization and Control · Mathematics 2022-03-14 Diptangshu Sen , Arnob Ghosh

The growing adoption of electric vehicles (EVs) is increasing peak demand in distribution systems, which can threaten grid stability and reduce operational efficiency. Dynamic electricity pricing is a promising means of mitigating these…

Systems and Control · Electrical Eng. & Systems 2026-05-27 Jiarui Yu , Zhiyu He , Wenbin Wang , Colin N. Jones , Florian Dörfler , Hanmin Cai

The growing share of proactive actors in the electricity markets calls for more attention on prosumers and more support for their decision-making under decentralized electricity markets. In view of the changing paradigm, it is crucial to…

Optimization and Control · Mathematics 2021-05-24 Ni Wang , Remco Verzijlbergh , Petra Heijnen , Paulien Herder

Decarbonizing electric grids is a crucial global endeavor in the pursuit of carbon neutrality. Taking carbon emissions from generation into account when pricing electricity usage is an essential way to achieve this goal. However, such…

Optimization and Control · Mathematics 2024-04-19 Yue Chen , Changhong Zhao

Incentive-based coordination mechanisms for distributed energy consumption have shown promise in aligning individual user objectives with social welfare, especially under privacy constraints. Our prior work proposed a two-timescale adaptive…

Systems and Control · Electrical Eng. & Systems 2025-04-02 Jiayi Li , Jiale Wei , Matthew Motoki , Yan Jiang , Baosen Zhang

Regulators and utilities have been exploring hourly retail electricity pricing, with several existing programs providing day-ahead hourly pricing schedules. At the same time, customers are deploying distributed energy resources and smart…

Systems and Control · Electrical Eng. & Systems 2025-09-11 Phillippe K. Phanivong , Duncan S. Callaway

The shift towards decentralized and renewable energy sources has introduced significant challenges to traditional power systems, necessitating innovative market designs. Local energy markets present a viable solution for integrating…

Systems and Control · Electrical Eng. & Systems 2024-10-18 Markus Doepfert , Soner Candas , Hermann Kraus , Peter Tzscheutschler , Thomas Hamacher

The burgeoning integration of distributed energy resources (DER) poses new challenges for the economic and safe operation of the electricity system. The current distribution-side policy is largely based on mandatory regulations and…

Systems and Control · Electrical Eng. & Systems 2021-07-07 Chunyi Huang , Chengmin Wang , Mingzhi Zhang , Ning Xie , Yong Wang

A large fraction of the total electric load is comprised of end-use devices whose demand for energy is inherently deferrable in time. Of interest is the potential to leverage on such latent flexibility in demand to absorb variability in…

Optimization and Control · Mathematics 2016-08-23 Eilyan Bitar , Yunjian Xu