Data-Driven Optimization of Incentive-based Demand Response System with Uncertain Responses of Customers

Jimyung Kang and Jee-Hyong Lee
Additional contact information
Jimyung Kang: Department of Electrical and Computer Engineering, Sungkyunkwan University, 2006 Seobu-ro, Jangan-gu, Suwon 440-746, Korea
Jee-Hyong Lee: Department of Electrical and Computer Engineering, Sungkyunkwan University, 2006 Seobu-ro, Jangan-gu, Suwon 440-746, Korea

Energies, 2017, vol. 10, issue 10, 1-17

Abstract: Demand response is nowadays considered as another type of generator, beyond just a simple peak reduction mechanism. A demand response service provider (DRSP) can, through its subcontracts with many energy customers, virtually generate electricity with actual load reduction. However, in this type of virtual generator, the amount of load reduction includes inevitable uncertainty, because it consists of a very large number of independent energy customers. While they may reduce energy today, they might not tomorrow. In this circumstance, a DSRP must choose a proper set of these uncertain customers to achieve the exact preferred amount of load curtailment. In this paper, the customer selection problem for a service provider that consists of uncertain responses of customers is defined and solved. The uncertainty of energy reduction is fully considered in the formulation with data-driven probability distribution modeling and stochastic programming technique. The proposed optimization method that utilizes only the observed load data provides a realistic and applicable solution to a demand response system. The performance of the proposed optimization is verified with real demand response event data in Korea, and the results show increased and stabilized performance from the service provider’s perspective.

Keywords: demand response optimization; demand response strategy; demand response service provider (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/1996-1073/10/10/1537/pdf (application/pdf)
https://www.mdpi.com/1996-1073/10/10/1537/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:10:y:2017:i:10:p:1537-:d:114079

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().