Price-based generation control in real-time energy market

This paper proposes the scheme of the price-based generation control (PbGC) in the real-time energy market. Compromising the global requirements of the independent system operator (ISO) and the individual profits of generation companies (GENCOs), we formulate the real-time energy market as a constrained optimal tracking problem. The quadratic objective function attempts to balance the power supply with the demand, and to stationarize the electricity price. The linear constraints present the price-responding dynamics of GENCOs. Numerical simulation results verify that the PbGC method is effective under various scenarios of demand patterns; furthermore it outperforms the existing multi-period optimal control (MpOC) approach on tracking errors and the price level.