Evolutionary Analysis for Residential Consumer Participating in Demand Response Considering Irrational Behavior

The global upsurge in research of smart grid and demand response (DR) is opening up new opportunities and challenges to China's power industry in recent years. The smart grid emphasize the interaction with user particularly, including the information interaction and power interaction, which are achieved through the deployment of various types of DR programs. Meanwhile, the development of smart grid also depends on demand response mechanism in the open market environment. DR coincides with the goal of smart grid which is to achieve a high-security, economical, reliable and efficient power system. So the collaboration between smart grid and demand response is talked in this paper. First,we analyze the relationship between smart grid and demand response systematically.Second,the development conditions of DR project in China and abroad are expounded. Furthermore, the necessity and significance of pushing DR project into smart grid is discussed and summarized, finally, methods and suggestions for achieving the collaboration are presented. (4 pages)

The Paris Agreement, which is carried out in a bottom-up manner, is giving great vitality to the transition to low-carbon energy system. Accordingly, as the spread of renewable energy increases, securing flexibility resources is emerging as a keyword in the power system and power market, and many studies on demand response (DR) and energy storage system (ESS) classified as demand-side flexible resources are being conducted. However, most of the studies on DR are on voluntary DR programs that participate through bidding among incentive-based DR or price-based DR programs, and ESS faced difficulties in its distribution due to low economic feasibility. Therefore, in this work, we propose a feasible process for participating in a reliability DR program that guarantees high profitability but involves high uncertainty, and non-cooperative game model is suggested to mitigate the uncertainty through surplus electricity-trading model of ESS. In addition, a subjective decision-making based on prospect theory is proposed to reflect the impact of the uncertainty about the incentive-based program’s engagement. Case study results performed in an environment formed based on actual operation data of the Korean DR market prove that participants’ uncertainty is mitigated when participating in the DR market through power trading of ESS through the proposed model. In addition, a small-scale ESS with an average benefit–cost ratio of 0.78 improves by up to 1.08 (1.04 with a standard scenario).

In the past two decades, interest in demand response (DR) schemes has grown exponentially. The need for DR has been driven by sustainability (environmental and socioeconomic) and cost-efficiency. The main premise of DR is to influence the timing and magnitude of consumption to match energy supply by sharing the benefits with consumers, ultimately aiming to optimize generation cost. As such, the first and primary enabler to DR was the establishment of contemporary electricity markets. Increased proliferation of Distributed Energy Resources (DER) and microgeneration further motivated the participation of consumers as active players in the market, popularizing DR and the wider category of Demand-Side Management (DSM) programs. Smart Grids (SG) have been an enabler to modern DR schemes, with smart metering data providing input to the underlying optimization and forecasting tools. The more recent emergence of the Internet of Energy (IoE), seen as the evolution of SG, is driven by increased Internet of Things (IoT)-enabling and high penetration of scalable and distributed energy resources. In this IoE paradigm being a fully decentralized network of energy prosumers, DR will continue to be a vital aspect of the grid in future Transactive Energy (TE) schemes, aiming for a more user-centered, energy-efficient, cost-saving, energy management approach. This paper investigates original motives and identifies the first mentions of DR in the legislative and scientific literature. Afterwards, the evolution of DR is tracked over the past four decades, attempting to study the co-influence of legislation and research by performing a thorough statistical analysis of research trends on the IEEE Xplore digital library. Finally, conclusions are made as to the current state of DR and future prospects of DR are discussed.

Demand Response (DR) is an important ingredient of the emerging Smart Grid paradigm. Although much of the DR emerging under Smart Grid is targeted at the distribution level, DR programs are regarded as important elements for reliable and economic operation of the transmission system and the wholesale markets. In the context of Energy and Ancillary Service markets facilitated by the ISOs/RTOs, DR programs may be broadly classified as market-based or reliability-based depending on the conditions under which DR is deployed: The former provide for DR vis-a-vis economic signals, while the latter are generally triggered under emergency conditions. Depending on the ISO/RTO market design and applicable operational standards, the market products DR can offer may include Energy, Reserve Ancillary Services (i.e., Supplemental/Non-spinning Reserve, Spinning/Responsive Reserve, or Regulating Reserve), and Capacity. In this paper we first explore different facets of Demand Response under the Smart Grid paradigm. We then briefly summarize the existing and evolving Demand Response 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.

Energy management has enhanced sustainability, dependability, and efficiency in smart grids. Urbanisation, technology, and consumer behaviour have boosted need for innovative power use and price control systems. The paper intends to construct ML for smart grid power use and price prediction. This work used an advanced shark smell-tuned flexible support vector machine (ASS-FSVM) to forecast smart grid price and power use. Weather stations, smart meters, and market price databases document power use and pricing. The quality and consistency of data are enhanced via the processes of cleaning and normalizing inputs. PCA reduces dimensionality by extracting pre-processed data characteristics. Optimized and tested FSVM models can anticipate smart grid power use and pricing. ASS may identify the most important dataset properties. The research evaluates electricity consumption forecasting using accuracy (98.05%), recall (98.93%), precision (97.10%), and F1-score (98.04%), and electricity price predicting using MAPE (4.32%), RMSE (5.80%), MSE (8.50%), and MAE (2.95%). The recommended strategy greatly increases forecast accuracy, helping utilities improve grid stability, demand responsiveness, and customer pricing.

In smart grid, customers have access to the electricity consumption and the price data via smart meters; thus, they are able to participate in the demand response (DR) programs. In this paper, we address the interaction among multiple utility companies and multiple customers in smart grid by modeling the DR problem as two noncooperative games: the supplier and customer side games. In the first game, supply function bidding mechanism is employed to model the utility companies’ profit maximization problem. In the proposed mechanism, the utility companies submit their bids to the data center, where the electricity price is computed and is sent to the customers. In the second game, the price anticipating customers determine optimal shiftable load profile to maximize their daily payoff. The existence and uniqueness of the Nash equilibrium in the mentioned games are studied and a computationally tractable distributed algorithm is designed to determine the equilibrium. Simulation results demonstrate the superior performance of the proposed DR method in increasing the utility companies’ profit and customers’ payoff, as well as in reducing the peak-to-average ratio in the aggregate load demand. Finally, the algorithm performance is compared with a DR method in the literature to demonstrate the similarities and differences.

Power systems have been undergoing radical changes in recent years, and their planning and operation will be surely undertaken according to the Smart Grid (SG) vision in the near future. The SG initiatives aim at introducing new technologies and services in power systems, to make the electrical networks more reliable, efficient, secure and environmentally-friendly. In particular, it is expected that communication technologies, computational intelligence and distributed energy sources will be widely used for the whole power system in an integrated fashion. In particular, nowadays, unprecedented challenges like as stringent regulations, environmental concerns, growing demand for high quality, reliable electricity and rising customer expectations are forcing utilities to rethink about electricity generation and delivery from the bottom up. Moreover, the availability of low cost computing and telecommunications technologies, new generation options, and scalable, modular automation systems push utilities to be dynamic, innovative and ambitious enough to take advantage of them. Driven by the dynamics of the new energy environment, leading utilities, technology vendors and government organizations have created a vision of the next generation of energy delivery systems: the Smart Grid. Operational changes of the grid, caused by restructuring of the electric utility industry and electricity storage technology advancements, have created an opportunity for storage systems to provide unique services to the evolving grid. Especially Battery Energy Storage Systems (BESSs), thanks to the large number and variety of services they can provide, are powerful tools for the solution of some challenges that future grids will face. This consideration makes BESSs critical components of the future grids. The BESS can be applied for different services into the different levels of power system chain to satisfy technical challenges and provide financial benefits. In the context of the application of BESSs in SGs, there are two main problems that need to be addressed in a way that exploits the BESS potential, that are linked to their operation and sizing. This thesis focuses on both these aspects, proposing new strategies that allow optimizing the BESS adoption. When dealing with BESSs, sizing and operation are strictly linked. The correct sizing of a BESS, in fact, needs to take into account its operation which in turn will be effected with the aim of optimizing the whole system where it is included. In the first part of this research study, advanced optimal operating strategies were proposed for BESSs by considering both the distribution system operator perspective and the end user. Thus, the proposed operating strategies were performed with the aim of (i) leveling the active power requested by the loads connected to a distribution system (distribution system operator service), (ii) reducing the electricity costs sustained by an end-use costumer that provides demand response (DR) (end user service) and (iii) scheduling a microgrid (µG) with DR resources such as Plug-in Electric Vehicles (PEVs) and Data Centers (DCs) (both the two section service). The proposed strategies also satisfied technical constraints of BESSs and other components of the µG. The second part of the thesis presented the optimal sizing of BESSs aimed at maximizing the benefits related to their use. In the thesis, the sizing, which is performed by considering the end user point of view with reference to both the industrial and residential customers, is effected by adopting both deterministic and probabilistic approaches. With reference to the deterministic approach, a simple and quick closed form procedure for the sizing of BESSs in residential and industrial applications was proposed. In case of probabilistic approach, the case of a BESS installed in an industrial facility was considered and the sizing was performed based on the decision theory. Technical improvements and economic benefits of optimal operation and optimal sizing of BESSs in SG are demonstrated by the obtained results which are reported in the numerical applications. More specifically, it was clearly determined that BESSs can offer technical supports into the distribution operator section of the grid in terms of load management and security challenges. Moreover optimal integration of BESSs into the grid was also appealing for end users thanks to valuable amounts of electricity bill cost reduction. Regarding the original contribution of the thesis, the following considerations can be done. With reference to the load leveling service, an innovative two-step procedure (day-ahead scheduling and very short time predictive control) was proposed which optimally controls a BESS connected to a distribution substation in order to perform load leveling. In case of DR, a proper control of the BESS was proposed in order to perform DR under different price schemes, such as Real Time Pricing (RTP) and Time of Use (TOU) without modifying the daily work cycle of the industrial loads. The control procedure allows achieving contemporaneously two important goals that are the reduction of the bill costs and the prolonging the battery's lifetime so further reducing the costs sustained by the customer. With reference to the scheduling of microgrids, the original contribution of the thesis is focused on the proposal of optimization strategies aimed at managing and coordinating, simultaneously, batteries on board of vehicles or equipping data centers' Uninterruptable Power Supply (UPS) and Distributed Generation (DG) units. Also comparisons among different single-objective based strategies are made in order to highlight the most convenient. With reference to the sizing based on deterministic approach, unlike the other relating literature, the innovative contribution is that the closed form procedure takes into account both the technical constraints of the battery and contractual agreements between the customer and the utility. Moreover, in the economical analysis performed for the sizing, which is applied with reference to both residential and small industrial customers and is based on actual TOU tariffs, a wide sensitivity analysis to consider different perspectives in terms of life span and future costs was performed. Some aspects that affect the profitability of the battery, such as technological limitations (e.g. the battery and converter efficiency), economic barriers (e.g. capital cost and the rate of change of the cost) and variation of the load profile along the years were deeply analyzed. In case of sizing based on probabilistic approach, the original contributions of the thesis are mainly referred to the proposal of a new method that uses a decision theory-based process to obtain the best sizing alternative considering the various uncertainties affecting the sizing procedure. The thesis is organized in three chapters which are dealing with integration of BESSs in SGs. The first chapter reports basic concepts and characteristics of BESSs, fundamental components and features of SGs and different services that BESSs can provide. The optimal operation strategies of BESS are considered in second chapter which includes their problem formulation, solving procedures and results. The third chapter deals with the optimal sizing problem of BESSs for which the problem formulation, solving procedures and results are reported. Finally, the conclusions are presented in the last part of thesis.

The stochastic nature of renewable energy sources creates unpredictable variability making instantaneous demand and supply a big challenge. Demand response (DR) which is an intentional modification of consumer loads as per utility requirement can support the intermittent nature of renewable energy sources, helping grid operators to quickly respond to power variability. Smart grids provide an opportunity for consumers to produce energy and feed it into the grid as well as control their energy requirement which is one of the important aspects of DR implementation. This paper provides an overview of various aspects of DR programs available in the literature from point of view of challenges, benefits, and applications. Various opportunities and challenges for DR deployment on renewable energy integration and smart grids from the Indian context are discussed in the work. The objective of the paper is to suggest drivers that will motivate DR deployment with effective renewable energy integration in the country. One of the important aspects of DR implementation in the country is to assess DR potential available among the different categories of consumers. Consumer baseline gives reference consumption which is used to assess DR potential. A case study has been conducted on one of the industrial feeders in Goa state to estimate consumer baseline load (CBL) using different methods. Average, maximum value, adjustment, and regression-based CBL estimation methods used for analysis are compared based on evaluated performance metrics. From the analysis, it is found that the adjustment method is most accurate for CBL estimation.

Investigating the Impacts of Modeling Variables- A Case Study with Smart Grid Demand Response

Demand response and smart grids—A survey

In this paper, we consider the problem of distributed load shedding optimization for disaster recovery in smart grids. We develop distributed second-order interior-point based load shedding algorithms that enjoy a fast quadratic convergence rate. Our main contributions are two-fold: (i) We propose a rooted spanning tree based reformulation that enables our distributed algorithm design; (ii) Based on the spanning tree reformulation, we design distributed computation schemes for our proposed second-order interior-point based load shedding. Collectively, these results serve as an important first step in load shedding and disaster recovery that uses second-order distributed techniques.

The necessity to seamlessly integrate emerging smart grid (SG) technologies to the electric distribution system has encouraged the development of demand-side management (DSM) and Demand Response (DR) programs. In particular, DR aggregators will play an important role in the new operational paradigm of SG. To propose a new three-phase optimal dispatch model for multiple DR aggregators. The model can consider several DR service providers by means of the explicit inclusion of their characteristics, in the form of cost functions and capacity, in an optimal dispatch model for DR support at the distribution system level. Hence, this proposal helps to eliminate any possible uncertainty about the provision of DR services by improving the traditional hierarchical scheme adopted based on prices issued by the independent system operator. By means of the unbalanced distribution system modeling, DR involvement of single- and three-phase consumers is considered avoiding aggravating the asymmetric balancing between phases, as opposed to traditional positive-sequence DR approaches. The model is implemented and solved combining the two state-of-the-art computational tools, Matlab® and OpenDSS. The former is used to solve the optimization problem, whereas the latter is used to perform numerical simulations of three-phase unbalanced power flow; both tools allow a straightforward model implementation resulting in a tool easily modified and updated. The effectiveness of the proposed approach is numerically demonstrated using the IEEE 13- and 123-node test feeders, in which undesirable operating scenarios are corrected by the implementation of the optimal dispatch of DR resources in very short computational times. Based on the results, it is shown how the ISO is capable to request DR considering several aggregators competing at the distribution system level. Finally, the loss reduction has been included in the objective function, showing that the proposal optimally dispatches the DR aggregators to conveniently minimize the ISO’s operational costs.

Demand response (DR) has become a key feature of the future Smart Grid. This paper assesses the potential of DR in mitigating the redundancy requirement of a high voltage (sub-transmission) grid. DR is considered as a redundancy alternative, activated by network contingencies. The end use appliance consumption pattern along with the load disaggregation technique is applied to determine the achievable DR. The comparison of outage cost for future load is adopted as an assessment method; this comparison is between non-investing in the network, and use of DR as a redundancy alternative. In the presence of DR, novel reliability models are developed in order to find the outage cost. The analysis conducted on a typical Finnish sub-transmission network indicates that the redundant capacity of the network proportional to DR capability can be mitigated. The employment of released redundant capacity for the increasing load will escalate network efficiency. As a consequence investments will be avoided

4 - Demand response: An enabling technology to achieve energy efficiency in a smart grid

Smart grids and systems envision systematic integration of flexibility achieved through demand response programs at end-users’ premises. Particularly interesting is the flexibility achieved from heterogenous sources such as residential consumers. Aggregators are expected to collect the flexibility from the residential consumers under contractual conditions and offer the aggregated flexibility by providing ancillary services to balance responsible parties. Additionally, aggregators of flexibility are expected to deliver flexibility programs rules (notification prior to a flexibility event, eligibility, rewards, penalties) respectively aligned with operating conditions, perform planning and forecasting of demand response flexibility and determine effectiveness of flexibility programs. The flexibility programs could also result in permanent energy savings which must be properly assessed. Monitoring and verification for demand response are imperative to determine demand reduction quantities in the context of settlement and impact estimation.Communication and information technologies incorporated into flexibility programs should allow realtime telemetry and event driven information of realized active demand response by remote control over specific customer equipment (flexibility assets). Load reductions achieved through the flexibility programs are not capable of being directly metered or observed. However, communication and information technologies should be capable of registering such event and such information should be properly identified. This paper analyses the capability for monitoring and verification of demand response of commonly adopted communication protocols (i.e OpenADR Open Automated Demand Response) and addresses the needs for proper semantic alignments. Such communication standards should have the ability for direct load control program accomplishment. For the demand response value chain to be fully functional, the paper also discusses the requirements for semantic interoperability among the above-mentioned entities.