Modeling and Optimization of Electricity Markets
We outline a number of models that are used within Electricity Markets for the design and operation of an interacting physical and economic system. We show how optimization and equilibrium concepts can be deployed within an extended mathematical programming framework. Examples that address issues of load shedding, demand response, bidding, storage market power and risk will be given. The interplay between complementarity and optimization will be highlighted, along with some references to Cournot and Stackleberg.
Michael C. Ferris is Professor of Computer Sciences and leads the Optimization Group within the Wisconsin Institutes for Discovery at the University of Wisconsin, Madison, USA. He received his PhD from the University of Cambridge, England in 1989.
Dr. Ferris' research is concerned with algorithmic and interface development for large scale problems in mathematical programming, including links to the GAMS and AMPL modeling languages, and general purpose software such as PATH, NLPEC and EMP. He has worked on several applications of both optimization and complementarity, including cancer treatment plan development, radiation therapy, video-on-demand data delivery, economic and traffic equilibria, structural and mechanical engineering.
Ferris is a SIAM fellow, an INFORMS fellow, received the Beale-Orchard-Hays prize from the Mathematical Programming Society and is a past recipient of a NSF Presidential Young Investigator Award, and a Guggenheim Fellowship. He serves on the editorial boards of Mathematical Programming, SIAM Journal on Optimization, Transactions of Mathematical Software, and Optimization Methods and Software.