Scenario-based Economic Dispatch with Uncertain Demand Response
Abstract
This paper introduces a new computational framework to account for uncertainties in day-ahead electricity market clearing process in the presence of demand response providers. A central challenge when dealing with many demand response providers is the uncertainty of its realization. In this paper, a new economic dispatch framework that is based on the recent theoretical development of the scenario approach is introduced. By removing samples from a finite uncertainty set, this approach improves dispatch performance while guaranteeing a quantifiable risk level with respect to the probability of violating the constraints. The theoretical bound on the level of risk is shown to be a function of the number of scenarios removed. This is appealing to the system operator for the following reasons: (1) the improvement of performance comes at the cost of a quantifiable level of violation probability in the constraints; (2) the violation upper bound does not depend on the probability distribution assumption of the uncertainty in demand response. Numerical simulations on (1) 3-bus and (2) IEEE 14-bus system (3) IEEE 118-bus system suggest that this approach could be a promising alternative in future electricity markets with multiple demand response providers.
Cite
@article{arxiv.1711.11441,
title = {Scenario-based Economic Dispatch with Uncertain Demand Response},
author = {Hao Ming and Le Xie and Marco Campi and Simone Garatti and P. R. Kumar},
journal= {arXiv preprint arXiv:1711.11441},
year = {2017}
}