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A rational behavior of a consumer is analyzed when the user participates in a Peak Time Rebate (PTR) mechanism, which is a demand response (DR) incentive program based on a baseline. A multi-stage stochastic programming is proposed from the…

Systems and Control · Computer Science 2018-02-23 José Vuelvas , Fredy Ruiz

This paper presents a novel data-driven method that determines the daily consumption patterns of customers without smart meters (SMs) to enhance the observability of distribution systems. Using the proposed method, the daily consumption of…

Systems and Control · Computer Science 2019-01-23 Yuxuan Yuan , Kaveh Dehghanpour , Fankun Bu , Zhaoyu Wang

This paper deals with the market-bidding problem of a cluster of price-responsive consumers of electricity. We develop an inverse optimization scheme that, recast as a bilevel programming problem, uses price-consumption data to estimate the…

Optimization and Control · Mathematics 2015-11-04 Javier Saez-Gallego , Juan M. Morales , Marco Zugno , Henrik Madsen

We develop a new identification strategy for demand estimation when cost shifters may not be available and there are substantial variations in demand over time. This approaches relies on a kind of nonlinear difference-in-differences, in…

General Economics · Economics 2025-12-23 Xavier D'Haultfœuille , Ao Wang , Philippe Février , Lionel Wilner

This paper studies identification and estimation of a dynamic discrete choice model of demand for differentiated product using consumer-level panel data with few purchase events per consumer (i.e., short panel). Consumers are…

Econometrics · Economics 2022-08-19 Victor Aguirregabiria

Contextual dynamic pricing aims to set personalized prices based on sequential interactions with customers. At each time period, a customer who is interested in purchasing a product comes to the platform. The customer's valuation for the…

Machine Learning · Statistics 2023-03-07 Yiyun Luo , Will Wei Sun , and Yufeng Liu

We study operations of a battery energy storage system under a baseline-based demand response (DR) program with an uncertain schedule of DR events. Baseline-based DR programs may provide undesired incentives to inflate baseline consumption…

Systems and Control · Electrical Eng. & Systems 2019-09-30 Douglas Ellman , Yuanzhang Xiao

Regulators and utilities have been exploring hourly retail electricity pricing, with several existing programs providing day-ahead hourly pricing schedules. At the same time, customers are deploying distributed energy resources and smart…

Systems and Control · Electrical Eng. & Systems 2025-09-11 Phillippe K. Phanivong , Duncan S. Callaway

In electricity markets, retailers or brokers want to maximize profits by allocating tariff profiles to end consumers. One of the objectives of such demand response management is to incentivize the consumers to adjust their consumption so…

Machine Learning · Computer Science 2022-02-14 Jyoti Narwariya , Chetan Verma , Pankaj Malhotra , Lovekesh Vig , Easwara Subramanian , Sanjay Bhat

Demand response (DR) programs play a crucial role in improving system reliability and mitigating price volatility by altering the core profile of electricity consumption. This paper proposes a game-theoretical model that captures the…

General Economics · Economics 2024-11-26 Arega Getaneh Abate , Rosana Riccardi , Carlos Ruiz

In the Smart Grid environment, the advent of intelligent measuring devices facilitates monitoring appliance electricity consumption. This data can be used in applying Demand Response (DR) in residential houses through data analytics, and…

Signal Processing · Electrical Eng. & Systems 2020-08-10 Abdelkareem Jaradat , Hanan Lutfiyya , Anwar Haque

Electricity supply is not simply a matter of quantity, but a time lasting service that matches with a wave-like load curve. It logically deserves a pricing based on the curve per se rather than simply integral of load. This paper introduces…

Systems and Control · Electrical Eng. & Systems 2020-04-02 Jinghuan Ma , Jie Gu , Zhijian Jin

Achieving decarbonization across energy sectors requires demand-side transformation such as behavioural changes and end-use efficiency improvements to complement supply-side technological shifts. However, changing consumption patterns is…

Physics and Society · Physics 2025-08-07 Parisa Rahdan , Mirko Schäfer , Ana Belén Cristóbal López , Marta Victoria

Demand response involves system operators using incentives to modulate electricity consumption during peak hours or when faced with an incidental supply shortage. However, system operators typically have imperfect information about their…

Systems and Control · Electrical Eng. & Systems 2022-06-23 Bharadwaj Satchidanandan , Mardavij Roozbehani , Munther A. Dahleh

Dynamic pricing is both an opportunity and a challenge to the demand side. It is an opportunity as it better reflects the real time market conditions and hence enables an active demand side. However, demand's active participation does not…

Systems and Control · Electrical Eng. & Systems 2019-12-04 Jiaman Wu , Zhiqi Wang , Chenye Wu , Kui Wang , Yang Yu

In societal-scale infrastructures, such as electric grids or transportation networks, pricing mechanisms are often used as a way to shape users' demand in order to lower operating costs and improve reliability. Existing approaches to…

Systems and Control · Electrical Eng. & Systems 2023-08-01 Spencer Hutchinson , Berkay Turan , Mahnoosh Alizadeh

This paper presents a new dynamic pricing model (a.k.a. real-time pricing) that reflects startup costs of generators. Dynamic pricing, which is a method to control demand by pricing electricity at hourly (or more often) intervals, has been…

Optimization and Control · Mathematics 2014-03-06 Naoki Ito , Akiko Takeda , Toru Namerikawa

This paper proposes an adaptive mechanism for price signal generation using a piecewise linear approximation of a flexibility function with unknown parameters. In this adaptive approach, the price signal is parameterized and the parameters…

Systems and Control · Electrical Eng. & Systems 2024-02-16 Seyed Shahabaldin Tohidi , Henrik Madsen , Georgios Tsaousoglou , Tobias K. S. Ritschel

The energy transition is expected to significantly increase the share of renewable energy sources whose production is intermittent in the electricity mix. Apart from key benefits, this development has the major drawback of generating a…

Trading and Market Microstructure · Quantitative Finance 2023-01-30 Thibaut Théate , Antonio Sutera , Damien Ernst

The implementation of efficient demand response (DR) programs for household electricity consumption would benefit from data-driven methods capable of simulating the impact of different tariffs schemes. This paper proposes a novel method…

Machine Learning · Statistics 2020-06-15 Margaux Brégère , Ricardo J. Bessa