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This paper presents a capacity-constrained incentive-based demand response approach for residential smart grids. It aims to maintain electricity grid capacity limits and prevent congestion by financially incentivising end users to reduce or…

Machine Learning · Computer Science 2026-02-19 Shafagh Abband Pashaki , Sepehr Maleki , Amir Badiee

Energy storage are strategic participants in electricity markets to arbitrage price differences. Future power system operators must understand and predict strategic storage arbitrage behaviors for market power monitoring and capacity…

Systems and Control · Electrical Eng. & Systems 2024-02-02 Yuexin Bian , Ningkun Zheng , Yang Zheng , Bolun Xu , Yuanyuan Shi

This paper exploits the Duration-of-Use of the demand patterns as a key concept for dealing with demand side flexibility. Starting from the consideration that fine-grained energy metering is not used at the point of supply of the…

Systems and Control · Electrical Eng. & Systems 2020-04-21 Gianfranco Chicco , Andrea Mazza

We consider a novel formulation of the dynamic pricing and demand learning problem, where the evolution of demand in response to posted prices is governed by a stochastic variant of the popular Bass model with parameters $\alpha, \beta$…

Machine Learning · Computer Science 2021-03-10 Shipra Agrawal , Steven Yin , Assaf Zeevi

Utilities use demand response to shift or reduce electricity usage of flexible loads, to better match electricity demand to power generation. A common mechanism is peak pricing (PP), where consumers pay reduced (increased) prices for…

Optimization and Control · Mathematics 2017-10-02 John Audie Cabrera , Yonatan Mintz , Jhoanna Rhodette Pedrasa , Anil Aswani

Traditional pricing paradigms, once dominated by static models and rule-based heuristics, are increasingly being replaced by dynamic, data-driven approaches powered by machine learning algorithms. Despite their growing sophistication, most…

Machine Learning · Computer Science 2025-12-01 Marco Mussi , Marcello Restelli

The increase in distributed energy resources and flexible electricity consumers has turned TSO-DSO coordination strategies into a challenging problem. Existing decomposition/decentralized methods apply divide-and-conquer strategies to trim…

Optimization and Control · Mathematics 2021-09-17 Juan Miguel Morales , Salvador Pineda , Yury Dvorkin

We study the pricing problem faced by a firm that sells a large number of products, described via a wide range of features, to customers that arrive over time. Customers independently make purchasing decisions according to a general choice…

Machine Learning · Statistics 2018-01-03 Adel Javanmard , Hamid Nazerzadeh

The increasing share of volatile renewable electricity production motivates demand response. Substantial potential for demand response is offered by flexible processes and their local multi-energy supply systems. Simultaneous optimization…

Optimization and Control · Mathematics 2024-01-10 Florian Joseph Baader , Philipp Althaus , André Bardow , Manuel Dahmen

In a Shared Mobility on Demand Service (SMoDS), dynamic pricing plays an important role in the form of an incentive for the decision of the empowered passenger on the ride offer. Strategies for determining the dynamic tariff should be…

Optimization and Control · Mathematics 2020-07-06 Yue Guan , Anuradha M. Annaswamy , H. Eric Tseng

In the present work we tackle the problem of finding the optimal price tariff to be set by a risk-averse electric retailer participating in the pool and whose customers are price-sensitive. We assume that the retailer has access to a…

Optimization and Control · Mathematics 2022-02-24 Román Pérez-Santalla , Miguel Carrión , Carlos Ruiz

A significant portion of electricity consumed worldwide is used to power thermostatically controlled loads (TCLs) such as air conditioners, refrigerators, and water heaters. Because the short-term timing of operation of such systems is…

Adaptation and Self-Organizing Systems · Physics 2018-03-12 Walter Bomela , Anatoly Zlotnik , Jr-Shin Li

With the continuous increase in the penetration of renewable energy in the emerging power systems, the pressure on system peak regulation has been significantly intensified. Against this backdrop, demand side resources particularly air…

Systems and Control · Electrical Eng. & Systems 2025-08-15 Jinhua He , Tingzhe Pan , Chao Li , Xin Jin , Zijie Meng , Wei Zhou

Mobile data demand is increasing tremendously in wireless social networks, and thus an efficient pricing scheme for social-enabled services is urgently needed. Though static pricing is dominant in the actual data market, price intuitively…

Computer Science and Game Theory · Computer Science 2018-08-14 Zehui Xiong , Dusit Niyato , Ping Wang , Zhu Han , Yang Zhang

Electricity price forecasting approaches generally fall into two categories: data-driven models, which learn from historical patterns, or fundamental models, which simulate market mechanisms. We propose a novel and highly efficient…

Applications · Statistics 2026-01-27 Paul Ghelasi , Florian Ziel

For a Demand Response (DR) program with internet data centers (IDC), the Price-Amount curve that estimates how the potential DR amount depends on the DR price determined by power systems is crucial. Constructing this curve is challenging…

Systems and Control · Electrical Eng. & Systems 2020-12-03 Yang Liu , Hung D. Nguyen

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

We consider dynamic pricing strategies in a streamed longitudinal data set-up where the objective is to maximize, over time, the cumulative profit across a large number of customer segments. We consider a dynamic model with the consumers'…

Machine Learning · Computer Science 2023-10-17 Rashmi Ranjan Bhuyan , Adel Javanmard , Sungchul Kim , Gourab Mukherjee , Ryan A. Rossi , Tong Yu , Handong Zhao

Traditional bulk load flexibility options, such as load shifting and load curtailment, for managing uncertainty in power markets limit the diversity of options and ignore the preferences of the individual loads, thus reducing efficiency and…

Systems and Control · Electrical Eng. & Systems 2021-12-20 Majid Majidi , Deepan Muthirayan , Masood Parvania , Pramod P. Khargonekar

Currently, system operators implement demand response by dispatching controllable loads for economic reasons in day-ahead scheduling. Particularly, demand shifting from peak hours when the cost of electricity is higher to non-peak hours to…

Optimization and Control · Mathematics 2020-06-23 Arun Venkatesh Ramesh , Xingpeng Li