EconPapers    
Economics at your fingertips  
 

Demand-side energy management under time-varying prices

Yong Liang, Tianhu Deng and Zuo-Jun Max Shen

IISE Transactions, 2019, vol. 51, issue 4, 422-436

Abstract: Under time-varying electricity prices, an end-user may be stimulated to delay flexible demands that can be shifted over time. In this article, we study the problem where each end-user adopts an energy management system that helps time flexible demands fulfillments. Discomfort costs are incurred if demand is not satisfied immediately upon arrival. Energy storage and trading decisions are also considered. We model the problem as a finite horizon undiscounted Markov Decision Process, and outline a tractable approximate dynamic programming approach to overcome the curse of dimensionality. Specifically, we construct an approximation for the value-to-go function such that Bellman equations are converted into mixed-integer problems with structural properties. Finally, we numerically demonstrate that our approach achieves close performance to the exact approach, while dominating the myopic policy and no-control policy. Most importantly, the proposed approach can take advantage of the price differences and efficiently shift demands.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/24725854.2018.1504357 (text/html)
Access to full text is restricted to subscribers.

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:taf:uiiexx:v:51:y:2019:i:4:p:422-436

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/uiie20

DOI: 10.1080/24725854.2018.1504357

Access Statistics for this article

IISE Transactions is currently edited by Jianjun Shi

More articles in IISE Transactions from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2025-03-20
Handle: RePEc:taf:uiiexx:v:51:y:2019:i:4:p:422-436