Algorithms for Electronic Power Markets

Abstract

In this thesis we focus resource allocation problems and electronic markets in particular. The main application area of ours is electricity markets. We present a number of algorithms and include practical experience. There is an ongoing restructuring of power markets in Europe and elsewhere, this implies that an industry that previously has been viewed as a natural monopoly becomes exposed to competition. In the thesis we move a step further suggesting that end users should take active part in the trade on power markets such as (i) day-ahead markets and (ii) markets handling close to real-time balancing of power grids. Our ideas and results can be utilised (a) to increase the efficiency of these markets and (b) to handle strained situations when power systems operate at their limits. For this we utilise information and communication technology available today and develop electronic market mechanisms designed for large numbers of participants typically distributed over a power grid. The papers of the thesis cover resource allocation with separable objective functions, a market mechanism that accepts actors with discontinuous demand, and mechanisms that allow actors to express combinatorial dependencies between traded commodities on multi-commodity markets. Further we present results from field tests and simulations.