The relation between equilibrium prices and socially optimal trades in electricity markets

摘要

This paper presents a method to discover socially optimal trades in deregulated electricity markets consisting of four types of participants: independent power producers, retailers, public utilities, and consumers. To consider the market as a simple model, our market model is represented by a tripartite graph composed of sellers, buyers, and buyers. In the electricity market, each seller has different supply capacity, and each buyer has different demand. Our method satisfies these constraints and finds socially optimal trades in the market model by utilizing network flows. Simulation results show the socially optimal trades in the deregulated electricity market model.