A Simple Market Mechanism For Renewable Power Producers Achieves Asymptotic Social Efficiency
Published:
Problem setting: Motivated by the fact that the marginal cost of renewable power producers is (almost) zero, we design a forward market mechanism where RPPs can participate, bid into it, and take responsibility for any deviation that exists between their promisrs and the actual power generation they have at the time of delivery.
Results: In this paper we prove that, in our proposed market mechanism for intermittent renewable energy resources, there exists Nash equilibrium, and with the increase of number of players, the Nash equilibrium converges to the social optimum.
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