A Comparative Study of Pricing Control Algorithms in Deregulated Electricity Market

In the future smart grid, both sides of the generation and the demand participate in the real-time electricity market, and their activities are responsive to the electricity price. Thus it is proposed the concept of “pricing control.” Considering the numerous algorithms of pricing control which are reported in literature, this paper performs a comparative study and evaluates their effectiveness and advantages. The pricing control scheme of electricity market is formulated. The control algorithms are presented, i.e., info-fusion-based control, multiperiod optimal control, adaptive estimation, proportional-integral, and moving average estimation. The differences are clarified; from the model description to the solving technique. The quality of the solution is computationally compared and analyzed.