Competitive Market with Renewable Power Producers Achieves Asymptotic Social Efficiency

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: The results show that our proposed market mechanism asymptotically achieves social optimality, as shown in the following figures.

To see the pdf of the paper, see link. The codes can be found in a Github repository in link.