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Title: Opportunities for Price Manipulation by Aggregators in Electricity Markets

Abstract

Aggregators of distributed generation are playing an increasingly crucial role in the integration of renewable energy in power systems. However, the intermittent nature of renewable generation makes market interactions of aggregators difficult to monitor and regulate, raising concerns about potential market manipulation by aggregators. In this paper, we study this issue by quantifying the profit an aggregator can obtain through strategic curtailment of generation in an electricity market. We show that, while the problem of maximizing the benefit from curtailment is hard in general, efficient algorithms exist when the topology of the network is radial (acyclic). Further, we highlight that significant increases in profit are possible via strategic curtailment in practical settings.

Authors:
ORCiD logo; ORCiD logo; ;
Publication Date:
Research Org.:
Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
Sponsoring Org.:
USDOE
OSTI Identifier:
1497694
Report Number(s):
PNNL-SA-141583
Journal ID: ISSN 1949-3053
DOE Contract Number:  
AC05-76RL01830
Resource Type:
Journal Article
Journal Name:
IEEE Transactions on Smart Grid
Additional Journal Information:
Journal Volume: 9; Journal Issue: 6; Journal ID: ISSN 1949-3053
Publisher:
IEEE
Country of Publication:
United States
Language:
English

Citation Formats

Azizan Ruhi, Navid, Dvijotham, Krishnamurthy, Chen, Niangjun, and Wierman, Adam. Opportunities for Price Manipulation by Aggregators in Electricity Markets. United States: N. p., 2018. Web. doi:10.1109/TSG.2017.2694043.
Azizan Ruhi, Navid, Dvijotham, Krishnamurthy, Chen, Niangjun, & Wierman, Adam. Opportunities for Price Manipulation by Aggregators in Electricity Markets. United States. doi:10.1109/TSG.2017.2694043.
Azizan Ruhi, Navid, Dvijotham, Krishnamurthy, Chen, Niangjun, and Wierman, Adam. Thu . "Opportunities for Price Manipulation by Aggregators in Electricity Markets". United States. doi:10.1109/TSG.2017.2694043.
@article{osti_1497694,
title = {Opportunities for Price Manipulation by Aggregators in Electricity Markets},
author = {Azizan Ruhi, Navid and Dvijotham, Krishnamurthy and Chen, Niangjun and Wierman, Adam},
abstractNote = {Aggregators of distributed generation are playing an increasingly crucial role in the integration of renewable energy in power systems. However, the intermittent nature of renewable generation makes market interactions of aggregators difficult to monitor and regulate, raising concerns about potential market manipulation by aggregators. In this paper, we study this issue by quantifying the profit an aggregator can obtain through strategic curtailment of generation in an electricity market. We show that, while the problem of maximizing the benefit from curtailment is hard in general, efficient algorithms exist when the topology of the network is radial (acyclic). Further, we highlight that significant increases in profit are possible via strategic curtailment in practical settings.},
doi = {10.1109/TSG.2017.2694043},
journal = {IEEE Transactions on Smart Grid},
issn = {1949-3053},
number = 6,
volume = 9,
place = {United States},
year = {2018},
month = {11}
}