The effects of residential real-time pricing contracts on transco loads, pricing, and profitability: Simulations using the N-ABLE (TM) agent-based model

Authored by Mark A. Ehlen, Andrew J. Scholand, Kevin L. Stamber

Date Published: 2007-03

DOI: 10.1016/j.eneco.2006.03.003

Sponsors: Consortium for Electric Reliability Technology Solutions (CERTS)

Platforms: Java

Model Documentation: Other Narrative Mathematical description

Model Code URLs: Model code not found

Abstract

An agent-based model is constructed in which a demand aggregator sells both uniform-price and real-time price (RTP) contracts to households as means for adding price elasticity in residential power use sectors, particularly during peak-price hours of the day. Simulations suggest that RTP contracts help a demand aggregator (1) shift its long-term contracts toward off-peak hours, thereby reducing its cost of power and (2) increase its short-run profits if it is one of the first aggregators to have large numbers of RTP contracts; but (3) create susceptibilities to short-term market demand and price volatilities. (c) 2006 Published by Elsevier B.V.

Tags

Agent-based model electric power market market redesign real-time pricing