Towards optimal demand-side bidding in parallel auctions for time-shiftable electrical loads
Increasing electricity production from renewableenergy sources has, by its fluctuating nature, created the need formore flexible demand side management. How to integrate flexibledemand in the electricity system is an open research question.We consider the case of procuring the energy needs of a time-shiftable load through a set of simultaneous second price auctions.We derive a required condition for optimal bidding strategies.We then show the following results and bidding strategies underdifferent market assumptions. For identical uniform auctionsand multiple units of demand, we show that the global optimalstrategy is to bid uniformly across all auctions. For non-identicalauctions and multiple units, we provide a way to find solutionsthrough a recursive approach and a non-linear solver. We showthat our approach outperforms the literature under higheruncertainty conditions.
|Heat and Power Systems at Industrial Sites and Harbours|
|18th IEEE International Conference on Industrial Informatics (INDIN'20)|
|Organisation||Intelligent and autonomous systems|
Saur, R, La Poutré, J.A, & Yorke-Smith, N. (2021). Towards optimal demand-side bidding in parallel auctions for time-shiftable electrical loads. In Proceedings of the IEEE International Conference on Industrial Informatics. doi:10.1109/INDIN45582.2020.9442077