Real-Time Wholesale Electricity Pricing for Power Systems with Energy Storage

In this paper, we propose a prediction-free online algorithm to determine real-time electricity prices for a power system with energy storage. Starting from an offline optimization model that minimizes the overall operation cost of the power system, we apply the Lyapunov optimization technique to turn the model into its online counterpart. Two propositions regarding the feasibility and optimality of the proposed online algorithm are proven theoretically. Simulation results on the IEEE 39-bus system demonstrate the effectiveness of the model in achieving cost minimization and efficient utilization of resources.