Coupon Incentive-Based Demand Response: Theory and Case Study
TL;DR: In this paper, a coupon incentive-based demand response (CIDR) scheme is proposed to induce demand response for a future period of time in anticipation of intermittent generation ramping and/or price spikes.
Abstract: This paper presents the formulation and critical assessment of a novel type of demand response (DR) program targeting retail customers (such as small/medium size commercial, industrial, and residential customers) who are equipped with smart meters yet still face a flat rate. Enabled by pervasive mobile communication capabilities and smart grid technologies, load serving entities (LSEs) could offer retail customers coupon incentives via near-real-time information networks to induce demand response for a future period of time in anticipation of intermittent generation ramping and/or price spikes. This scheme is referred to as coupon incentive-based demand response (CIDR). In contrast to the real-time pricing or peak load pricing DR programs, CIDR continues to offer a flat rate to retail customers and also provides them with voluntary incentives to induce demand response. Theoretical analysis shows the benefits of the proposed scheme in terms of social welfare, consumer surplus, LSE profit, the robustness of the retail electricity rate, and readiness for implementation. The pros and cons are discussed in comparison with existing DR programs. Numerical illustration is performed based on realistic supply and demand data obtained from the Electric Reliability Council of Texas (ERCOT).
Citations
More filters
TL;DR: This paper provides a comprehensive review of various DR schemes and programs, based on the motivations offered to the consumers to participate in the program, and presents various optimization models for the optimal control of the DR strategies that have been proposed so far.
Abstract: The smart grid concept continues to evolve and various methods have been developed to enhance the energy efficiency of the electricity infrastructure. Demand Response (DR) is considered as the most cost-effective and reliable solution for the smoothing of the demand curve, when the system is under stress. DR refers to a procedure that is applied to motivate changes in the customers' power consumption habits, in response to incentives regarding the electricity prices. In this paper, we provide a comprehensive review of various DR schemes and programs, based on the motivations offered to the consumers to participate in the program. We classify the proposed DR schemes according to their control mechanism, to the motivations offered to reduce the power consumption and to the DR decision variable. We also present various optimization models for the optimal control of the DR strategies that have been proposed so far. These models are also categorized, based on the target of the optimization procedure. The key aspects that should be considered in the optimization problem are the system's constraints and the computational complexity of the applied optimization algorithm.
854 citations
TL;DR: The state-of-the-art ofIDR in the MESs is reviewed for the first time and the basic concept of IDR and the value analysis are introduced, and the research on IDR inThe MES is summarized.
355 citations
TL;DR: In this article, the authors proposed a framework of energy, social and information science, which includes energy social science, social informatics and energy informatics, to understand and change household energy consumption behavior.
Abstract: Understanding and changing household energy consumption behavior are considered as effective ways to improve energy efficiency and promote energy conservation. With the increasing penetration of conventional and emerging information and communication technologies (ICTs) in energy sector, traditional energy systems are being digitized. The energy big data provides a new way to analyze and understand individuals׳ energy consumption behavior, and thus to improve energy efficiency and promote energy conservation. We first propose a framework of the interdisciplinary research of energy, social and information science, which includes energy social science, social informatics and energy informatics. Then, different dimensions and different research paradigms of household energy consumption behavior are presented. Household energy consumption behavior can be analyzed in time dimension, user dimension and spatial dimension. The economic paradigm (including demand response) and the behavior-oriented paradigm (including intervention strategies) are two major research streams of household energy consumption behavior. Finally, the “4V” characteristics (i.e., volume, velocity, variety and value) of energy big data are discussed.
265 citations
TL;DR: Simulation results show that this proposed incentive-based demand response algorithm induces demand side participation, promotes service provider and customers profitabilities, and improves system reliability by balancing energy resources, which can be regarded as a win-win strategy for both service providers and customers.
253 citations
Cites background from "Coupon Incentive-Based Demand Respo..."
...The study described in [13] presented a coupon incentive-based DR for the load serving entities to promote its profit, CU surpluses and social welfare, through providing the retail CU incentives to induce demand reduction....
[...]
TL;DR: In this paper, the authors proposed a distributed direct load control scheme for large-scale residential demand response (DR) built on a two-layer communication-based control architecture, which utilizes the average consensus algorithm to distribute portions of the desired aggregated demand to each EMC in a decentralized fashion.
Abstract: This paper proposes a distributed direct load control scheme for large-scale residential demand response (DR) built on a two-layer communication-based control architecture. The lower-layer network is within each building, where the energy management controller (EMC) uses wireless links to schedule operation of appliances upon request according to a local power consumption target. The upper-layer network links a number of EMCs in a region whose aggregated demand is served by a load aggregator. The load aggregator wants the actual aggregated demand over this region to match a desired aggregated demand profile. Our approach utilizes the average consensus algorithm to distribute portions of the desired aggregated demand to each EMC in a decentralized fashion. The allocated portion corresponds to each building's aforementioned local power consumption target which its EMC then uses to schedule the in-building appliances. The result will be an aggregated demand over this region that more closely reaches the desired demand. Numerical results show that our scheme can alleviate the mismatch between the actual aggregated demand and the desired aggregated demand profile.
242 citations
References
More filters
TL;DR: The details of the network modeling and problem formulations used by MATPOWER, including its extensible OPF architecture, are presented, which are used internally to implement several extensions to the standard OPF problem, including piece-wise linear cost functions, dispatchable loads, generator capability curves, and branch angle difference limits.
Abstract: MATPOWER is an open-source Matlab-based power system simulation package that provides a high-level set of power flow, optimal power flow (OPF), and other tools targeted toward researchers, educators, and students. The OPF architecture is designed to be extensible, making it easy to add user-defined variables, costs, and constraints to the standard OPF problem. This paper presents the details of the network modeling and problem formulations used by MATPOWER, including its extensible OPF architecture. This structure is used internally to implement several extensions to the standard OPF problem, including piece-wise linear cost functions, dispatchable loads, generator capability curves, and branch angle difference limits. Simulation results are presented for a number of test cases comparing the performance of several available OPF solvers and demonstrating MATPOWER's ability to solve large-scale AC and DC OPF problems.
5,583 citations
"Coupon Incentive-Based Demand Respo..." refers background in this paper
...Based on the demand curve with a staircase shape, the utility function of consumer is a concave -segment piecewise linear function [43]:...
[...]
Book•
30 Nov 1988
TL;DR: In this paper, the authors present a method to find the most relevant information from Bibliogr. : p. 255-266. Index Reference Record created on 2004-09-07, modified on 2016-08-08
Abstract: Note: Bibliogr. : p. 255-266. Index Reference Record created on 2004-09-07, modified on 2016-08-08
1,914 citations
01 Dec 1987
TL;DR: In this paper, the authors discuss the state of the art in short-term load forecasting (STLF), that is, the prediction of the system load over an interval ranging from one hour to one week.
Abstract: This paper discusses the state of the art in short-term load forecasting (STLF), that is, the prediction of the system load over an interval ranging from one hour to one week. The paper reviews the important role of STLF in the on-line scheduling and security functions of an energy management system (EMS). It then discusses the nature of the load and the different factors influencing its behavior. A detailed classification of the types of load modeling and forecasting techniques is presented. Whenever appropriate, the classification is accompanied by recommendations and by references to the literature which support or expand the discussion. The paper also presents a lengthy discussion of practical aspects for the development and usage of STLF models and packages. The annotated bibliography offers a representative selection of the principal publications in the STLF area.
934 citations
"Coupon Incentive-Based Demand Respo..." refers background in this paper
...This is due to the fact that electricity consumption exhibits strong cyclic patterns over time [39]....
[...]
TL;DR: The main industry drivers of smart grid and the different facets of DER under the smart grid paradigm are explored and the existing and evolving programs at different ISOs/RTOs and the product markets they can participate in are summarized.
Abstract: Demand response (DR), distributed generation (DG), and distributed energy storage (DES) are important ingredients of the emerging smart grid paradigm. For ease of reference we refer to these resources collectively as distributed energy resources (DER). Although much of the DER emerging under smart grid are targeted at the distribution level, DER, and more specifically DR resources, are considered important elements for reliable and economic operation of the transmission system and the wholesale markets. In fact, viewed from transmission and wholesale operations, sometimes the term ?virtual power plant? is used to refer to these resources. In the context of energy and ancillary service markets facilitated by the independent system operators (ISOs)/regional transmission organizations (RTOs), the market products DER/DR can offer may include energy, ancillary services, and/or capacity, depending on the ISO/RTO market design and applicable operational standards. In this paper we first explore the main industry drivers of smart grid and the different facets of DER under the smart grid paradigm. We then concentrate on DR and summarize the existing and evolving programs at different ISOs/RTOs and the product markets they can participate in. We conclude by addressing some of the challenges and potential solutions for implementation of DR under smart grid and market paradigms.
846 citations
"Coupon Incentive-Based Demand Respo..." refers background in this paper
...As the penetration of intermittent generation increases, well designed and utilized DR could lead to great system-wide benefits in terms of improving power system security and economic efficiency [3]....
[...]
TL;DR: In this paper, the authors argue that increasing the short-run price elasticity of the demand for electrical energy would improve the operation of electricity markets, however, that enhancing this elasticity is not an easy task.
Abstract: This tutorial paper discusses some aspects of electricity markets from the perspective of the demand-side. It argues that increasing the short-run price elasticity of the demand for electrical energy would improve the operation of these markets. It shows, however, that enhancing this elasticity is not an easy task. The tools that consumers and retailers of electrical energy need to participate more actively and effectively in electricity markets are discussed. The paper also describes how consumers of electricity can take part in the provision of power system security.
807 citations
"Coupon Incentive-Based Demand Respo..." refers background in this paper
...4, the original supply curve shifts to the left [42]....
[...]