Online Algorithms for Dynamic Matching Markets in Power Distribution Systems

Abstract

This letter proposes online algorithms for dynamic matching markets in power distribution systems. These algorithms address the problem of matching flexible loads with renewable generation, with the objective of maximizing social welfare of the exchange in the system. More specifically, two online matching algorithms are proposed for two generation-load scenarios: (i) when the mean of renewable generation is greater than the mean of the flexible load, and (ii) when the condition (i) is reversed. With the intuition that the performance of such algorithms degrades with increasing randomness of the supply and demand, two properties are proposed for assessing the performance of the algorithms. First property is convergence to optimality (CO) as the underlying randomness of renewable generation and customer loads goes to zero. The second property is deviation from optimality, which is measured as a function of the standard deviation of the underlying randomness of renewable generation and customer loads. The algorithm proposed for the first scenario is shown to satisfy CO and a deviation from optimality that varies linearly with the variation in the standard deviation. We then show that the algorithm proposed for the second scenario satisfies CO and a deviation from optimality that varies linearly with the variation in standard deviation plus an offset under certain condition.