Department of Engineering Science

Photograph of Javad Khazaei

Javad Khazaei



Dr Golbon Zakeri, Dr Geoffrey Pritchard (Statistics)


Title: Mechanism design for electricity markets under uncertainty

Abstract: I propose to study the problem of designing effective market clearing mechanisms in the presence of uncertainty. Initially, this research stemmed to enable the integration of wind and other volatile sources of energy into the electric power system. Currently, the electricity industry utilizes deterministic optimization approaches to schedule the optimal (i.e. least cost) production of energy. This assumes that all parameters such as demand and production capacities are known. With the introduction of wind power, production capacities become volatile and a stochastic approach is called for. Nevertheless, the same principles can be applied to day ahead and real time markets, where the sources of uncertainty are not necessarily renewable resources. One can even think of applying these mechanisms in order to integrate contract and spot markets.

The benefits of this research include enabling the efficient use of renewable resources such as wind energy. This is clearly an issue of utmost importance in New Zealand and worldwide. New Zealand has one of the world’s best wind power resources and making full use of it is a high national priority. This research is a very new and notable application of stochastic programming. Investigating the wind integration problem will spur the development of new techniques in the field of stochastic programming.