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We design an optimal contract between a demand response aggregator (DRA) and a customer for incentive-based demand response. We consider a setting in which the customer is asked to reduce her consumption by the DRA and she is compensated…

Optimization and Control · Mathematics 2024-10-30 Donya G. Dobakhshari , Vijay Gupta

Despite the success of demand response programs in retail electricity markets in reducing average consumption, the random responsiveness of consumers to price event makes their efficiency questionable to achieve the flexibility needed for…

Optimization and Control · Mathematics 2019-05-28 René Aïd , Dylan Possamaï , Nizar Touzi

Demand Response (DR) is a program designed to match supply and demand by modifying consumption profile. Some of these programs are based on economic incentives, in which, a user is paid to reduce his energy requirements according to an…

Computer Science and Game Theory · Computer Science 2018-05-31 José Vuelvas , Fredy Ruiz , Giambattista Gruosso

Power companies such as Southern California Edison (SCE) uses Demand Response (DR) contracts to incentivize consumers to reduce their power consumption during periods when demand forecast exceeds supply. Current mechanisms in use offer…

Computer Science and Game Theory · Computer Science 2017-05-23 Reshef Meir , Hongyao Ma , Valentin Robu

We adopt the perspective of an aggregator, which seeks to coordinate its purchase of demand reductions from a fixed group of residential electricity customers, with its sale of the aggregate demand reduction in a two-settlement wholesale…

Systems and Control · Computer Science 2017-12-29 Kia Khezeli , Eilyan Bitar

Demand response (DR) is a cost-effective and environmentally friendly approach for mitigating the uncertainties in renewable energy integration by taking advantage of the flexibility of customers' demands. However, existing DR programs…

Optimization and Control · Mathematics 2017-05-11 Joshua Comden , Zhenhua Liu , Yue Zhao

Demand-side response programs which also called Demand Response (DR) are interesting ways to attract consumers' participation in order to improve electric consumption patterns. DR programs motivate customers to change consumption patterns…

Physics and Society · Physics 2021-11-29 Mohammadreza Shekari , Hamidreza Arasteh , Alireza Sheikhi Fini , Vahid Vahidinasab

Residential Demand Response has emerged as a viable tool to alleviate supply and demand imbalances of electricity, particularly during times when the electric grid is strained due a shortage of supply. Demand Response providers bid…

Computer Science and Game Theory · Computer Science 2017-09-05 Datong P. Zhou , Maximilian Balandat , Munther A. Dahleh , Claire J. Tomlin

Large electricity customers (e.g., large data centers) can exhibit huge and variable electricity demands, which poses significant challenges for the electricity suppliers to plan for sufficient capacity. Thus, it is desirable to design…

Computer Science and Game Theory · Computer Science 2020-09-15 Pan Lai , Lingjie Duan , Xiaojun Lin

This paper proposes a novel continuous-time dynamic contract framework that has a risk-limiting capability. If a principal and an agent enter into such a contract, the principal can optimally manage its performance and risk with a guarantee…

Optimization and Control · Mathematics 2014-10-10 Insoon Yang , Duncan S. Callaway , Claire J. Tomlin

Demand response (DR), as one of the important energy resources in the future's grid, provides the services of peak shaving, enhancing the efficiency of renewable energy utilization with a short response period, and low cost. Various…

Artificial Intelligence · Computer Science 2022-02-10 Kuan-Cheng Lee , Hong-Tzer Yang , Wenjun Tang

In this paper we formulate a contract design problem where a primary license holder wishes to profit from its excess spectrum capacity by selling it to potential secondary users/buyers. It needs to determine how to optimally price the…

Computational Engineering, Finance, and Science · Computer Science 2012-07-30 Shang-Pin Sheng , Mingyan Liu

Demand response has been implemented by distribution system operators to reduce peak demand and mitigate contingency issues on distribution lines and substations. Specifically, the campus based commercial buildings make the major…

Optimization and Control · Mathematics 2018-12-21 Zheming Liang , Desong Bian , Xiaohu Zhang , Di Shi , Ruisheng Diao , Zhiwei Wang

Renewable sources are taking center stage in electricity generation. However, matching supply with demand in a renewable-rich system is a difficult task due to the intermittent nature of renewable resources (wind, solar, etc.). As a result,…

Systems and Control · Electrical Eng. & Systems 2020-09-02 Haris Mansoor , Naveed Arshad

We study the optimal design of electricity contracts among a population of consumers with different needs. This question is tackled within the framework of Principal-Agent problems in presence of adverse selection. The particular features…

Optimization and Control · Mathematics 2019-09-17 Clémence Alasseur , Ivar Ekeland , Romuald Elie , Nicolás Hernández Santibáñez , Dylan Possamaï

This paper proposes a method to design an optimal dynamic contract between a principal and an agent, who has the authority to control both the principal's revenue and an engineered system. The key characteristic of our problem setting is…

Optimization and Control · Mathematics 2014-03-24 Insoon Yang , Duncan S. Callaway , Claire J. Tomlin

Demand Response (DR) has a widely recognized potential for improving grid stability and reliability while reducing customers energy bills. However, the conventional DR techniques come with several shortcomings, such as inability to handle…

Systems and Control · Electrical Eng. & Systems 2020-09-24 Amin Shojaeighadikolaei , Arman Ghasemi , Kailani R. Jones , Alexandru G. Bardas , Morteza Hashemi , Reza Ahmadi

Demand-side management presents significant benefits in reducing the energy load in smart grids by balancing consumption demands or including energy generation and/or storage devices in the user's side. These techniques coordinate the…

Optimization and Control · Mathematics 2016-05-06 Javier Zazo , Santiago Zazo , Sergio Valcarcel Macua

Demand response (DR) is not only a crucial solution to the demand side management but also a vital means of electricity market in maintaining power grid reliability, sustainability and stability. DR can enable consumers (e.g. data centers)…

Computer Science and Game Theory · Computer Science 2019-01-11 Jianhai Chen , Deshi Ye , Shouling Ji , Qinming He , Yang Xiang , Zhenguang Liu

Demand response (DR) refers to change in electricity consumption pattern of customers during on-peak hours in lieu of financial gains to reduce stress on distribution systems. Existing dynamic price models have not provided adequate success…

Systems and Control · Electrical Eng. & Systems 2021-05-24 Rayees A. Thokar , Nikhil Gupta , K. R. Niazi , Anil Swarnkar , Nand K. Meena
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