Dynamic energy pricing by closed-loop fractional-order PI control system and energy balancing in smart grid energy markets

Abstract

This study investigates dynamic energy price regulation by a closed-loop fractional-order PI control system and presents a possible application for the automated energy balancing in smart grid energy markets. A persistent balance of energy demand and generation is a substantial problem for future smart grids due to the uncertainty and high fluctuation in the generation of distributed renewable energy sources and elastic demand conditions. Dynamic energy pricing is an effective strategy to balance flexible energy markets and it can provide the best energy price that balances energy demand and generation. We numerically demonstrate that closed-loop generation control by using dynamic pricing can provide persistent settling to the best price point of demand and supply curves, when the energy balance error is defined as the difference between instant demand and generation potentials. We analyse energy market management performance of a fractional-order PI controller in the case of communication and operation delays in a multi-source energy market model. Market simulation results are discussed to demonstrate the possible advantages of the fractional-order PI controller for smart grid energy market managements.