Prof. Toru Namerikawa and his graduate students from Keio University have developed the novel distributed-type electricity price decision mechanism which guarantees the profit of the electric power market participants after the electricity liberalization in 2016 in Japan as a JST CREST program.
The quantities of the electric power demand and supply have to be strictly equivalent anytime 24 hours a day because an imbalance of them causes a decline of electric power quality of frequency drift. The power retailing liberalization in Japan will start in 2016 and an electric transmission separation will be planned to start around 2018-2020. After the liberalization, the electrical market participants will be able to pursue only the profit selfishly and decide the amount of trading electric power quantities. The novel electricity price decision mechanism to lead selfish behavior to the behavior which considered a balance of electric power supply and demand was proposed and developed based on game theory.
The developed mechanism showed that the real-time pricing which changes electricity price is able to achieve the public social profit. The numerical experiments of a power network with the developed pricing mechanism were carried out and their results proved that the mechanism could lead selfish behavior of each consumer and the supplier to the public social profit. This means that the developed real-time pricing mechanism is expected to be useful for building of economy and a control model of a stable electric power network after the future power retailing liberalization. For practical use, the research team organized by Prof. Namerikawa will continue to develop an extended mechanism considering the incentive cost which will be paid to market participants via an independent power system operator (ISO).
This is a joint research work with Dr. Masahiro Ono from NASA Jet Propulsion Laboratory.
This research result had been published in (the American eastern hour) by an on-line edition of IEEE (Institute of Electrical and Electronic Engineers) Trans. on Smart Grid on July 24, 2015.
JST CREST Research Area “Creation of Fundamental Theory and Technology to Establish a Cooperative Distributed Energy Management System and Integration of Technologies Across Broad Disciplines Toward Social Application” Research Theme “Principle Design, Experimental Proof, Implementation and Policy Recommendation to Establish Energy Supply-demand Networks based on Integration of Economic Models and Physical Models”
“Real-Time Pricing Mechanism for Electricity Market With Built-in Incentive for Participation”. Smart Grid, IEEE Transactions on, Year: 2015, Volume: PP, Issue: 99, doi: 10.1109/TSG.2015.2447154.
Toru Namerikawa, Ph.D.
Professor, Department of System Design Engineering, Keio University
ICT Group, Department of Innovation Research, JST