Optimal Combinatorial Electricity Markets
The deregulation of the electricity industry in many countries has created a number of marketplaces in which producers and consumers can operate in order to more effectively manage and meet their energy needs. To this end, this paper develops a new model for electricity retail where end-use customer...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
2008.
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| Subjects: | |
| Online Access: | Get fulltext Get fulltext |
| Summary: | The deregulation of the electricity industry in many countries has created a number of marketplaces in which producers and consumers can operate in order to more effectively manage and meet their energy needs. To this end, this paper develops a new model for electricity retail where end-use customers choose their supplier from competing electricity retailers. The model is based on simultaneous reverse combinatorial auctions, designed as a second-price sealed-bid multi-item auction with supply function bidding. This model prevents strategic bidding and allows the auctioneer to maximise its payoff. Furthermore, we develop optimal single-item and multi-item algorithms for winner determination in such auctions that are significantly less complex than those currently available in the literature. |
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