@inproceedings{Ye:2014:10.1109/PESGM.2016.7741209,
author = {Ye, Y and Papadaskalopoulos, D and Strbac, G},
doi = {10.1109/PESGM.2016.7741209},
pages = {1--7},
publisher = {IEEE},
title = {Pricing Flexible Demand Non-Convexities in Electricity Markets},
url = {http://dx.doi.org/10.1109/PESGM.2016.7741209},
year = {2014}
}

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TY  - CPAPER
AB  - Uniform marginal prices cannot generally support competitive equilibrium solutions in markets with non-convexities and yield schedules' inconsistency and surplus sub-optimality effects. Previous work has identified non-convexities associated with the generation side of electricity markets and proposed a generalized uplift approach to eliminate these effects. This paper examines the above issues from the perspective of the flexible demand (FD) side. FD non-convexities are identified, including its ability to forgo demand activities and minimum power levels, and resulting inconsistency and surplus sub-optimality effects are demonstrated through simple examples. Generalized uplift functions for FD participants are proposed, including quadratic pricing terms to limit their tendency to concentrate at the lowest-priced periods, and binary terms associated with their ability to forgo activities. Finally, a new rule is proposed for the equitable distribution of the total surplus loss among the market participants. These contributions are supported by case studies on a market with a day-ahead horizon and hourly resolution.
AU  - Ye,Y
AU  - Papadaskalopoulos,D
AU  - Strbac,G
DO  - 10.1109/PESGM.2016.7741209
EP  - 7
PB  - IEEE
PY  - 2014///
SN  - 1944-9933
SP  - 1
TI  - Pricing Flexible Demand Non-Convexities in Electricity Markets
UR  - http://dx.doi.org/10.1109/PESGM.2016.7741209
UR  - http://hdl.handle.net/10044/1/28308
ER  - 

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