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- W3123670774 abstract "We argue that deterministic market clearing formulations introduce arbitrary distortions between day-ahead and expected real-time prices that bias economic incentives and block diversification. We extend and analyze the stochastic clearing formulation proposed by Pritchard et al. (2010) in which the social surplus function induces penalties between day-ahead and real-time quantities. We prove that the formulation yields price distortions that are bounded by the bid prices, and we show that adding a similar penalty term to transmission flows and phase angles ensures boundedness throughout the network. We prove that when the price distortions are zero, day-ahead quantities converge to the quantile of real-time counterparts. The undesired effects of price distortions suggest that stochastic settings provide significant benefits over deterministic ones that go beyond social surplus improvements. We propose additional metrics to evaluate these benefits." @default.
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- W3123670774 date "2015-10-01" @default.
- W3123670774 modified "2023-09-23" @default.
- W3123670774 title "A Stochastic Electricity Market Clearing Formulation with Consistent Pricing Properties" @default.
- W3123670774 hasPublicationYear "2015" @default.
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