A linear programming model for real-time pricing of electric power service
Operations ResearchPublished 1 May 1993
Stephen A. Smith
Citations16
SJR quartileQ1
SJR score2.56
SNIP1.83
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Abstract
Real-time pricing (RTP) is an electric power service offering in which prices vary over time, based on projected supply and demand conditions. Prices may vary hourly or in larger time blocks and are typically announced several hours to one day in advance. RTP is an attractive option because it approximates the economic efficiency of spot pricing, while allowing customers time to react to prices. Currently, most RTP programs are experimental and price is set at approximately marginal cost. This approach does not consider how customers respond to the prices, as well as how their responses impact system costs and capacity requirements
Keywords
Engineering
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