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In many power grids, a large portion of the energy costs for commercial and industrial consumers are set with reference to the coincident peak load, the demand during the maximum system-wide peak, and their own maximum peak load, the…

Optimization and Control · Mathematics 2024-09-09 Rene Carmona , Xinshuo Yang , Siddharth Bhela , Claire Zeng

As electricity consumption grows, reducing peak demand--the maximum load on the grid--has become critical for preventing infrastructure strain and blackouts. Pricing mechanisms that incentivize consumers with flexible loads to shift…

Computer Science and Game Theory · Computer Science 2025-11-17 Vade Shah , Jason R. Marden

Minimizing the peak power consumption and matching demand to supply, under fixed threshold polices, are two key requirements for the success of the future electricity market. In this work, we consider dynamic pricing methods to minimize the…

Optimization and Control · Mathematics 2016-10-26 Zaid Almahmoud , Jacob Crandall , Khaled Elbassioni , Trung Thanh Nguyen , Mardavij Roozbehani

Meeting the ever-growing needs of the power grid requires constant infrastructure enhancement. There are two important aspects for a grid ability to ensure continuous and reliable electricity delivery to consumers: capacity, the maximum…

Optimization and Control · Mathematics 2024-07-08 Rene Carmona , Xinshuo Yang , Claire Zeng

This paper presents a coordinative demand charge mitigation (DCM) strategy for reducing electricity consumption during system peak periods. Available DCM resources include batteries, diesel generators, controllable loads, and conservation…

Systems and Control · Electrical Eng. & Systems 2023-02-02 Rongxing Hu , Kai Ye , Hyeonjin Kim , Hanpyo Lee , Ning Lu , Di Wu , PJ Rehm

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

Demand charge, a utility fee based on an electricity customer's peak power consumption, often constitutes a significant portion of costs for commercial electric vehicle (EV) charging station operators. This paper explores control methods to…

Systems and Control · Electrical Eng. & Systems 2026-04-14 Thibaud Cambronne , Samuel Bobick , Wente Zeng , Scott Moura

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

We consider the problem of planning the aggregate energy consumption for a set of thermostatically controlled loads for demand response, accounting price forecast trajectory and thermal comfort constraints. We address this as a…

Optimization and Control · Mathematics 2019-05-09 Fernando A. C. C. Fontes , Abhishek Halder , Jorge Becerril , P. R. Kumar

In an electric power system, demand fluctuations may result in significant ancillary cost to suppliers. Furthermore, in the near future, deep penetration of volatile renewable electricity generation is expected to exacerbate the variability…

Optimization and Control · Mathematics 2012-07-13 John N. Tsitsiklis , Yunjian Xu

Users can arbitrage against Time-of-Use (ToU) pricing with storage by charging in off-peak period and discharge in peak periods. In this paper we design the optimal control policy and the solve optimal investment for general ToU scheme. We…

Systems and Control · Electrical Eng. & Systems 2019-11-12 Zhiqi Wang , Kui Wang , Yang Yu , Chenye Wu

The cost of the power distribution infrastructures is driven by the peak power encountered in the system. Therefore, the distribution network operators consider billing consumers behind a common transformer in the function of their peak…

Systems and Control · Electrical Eng. & Systems 2022-04-01 Wenqi Cai , Hossein N. Esfahani , Arash B. Kordabad , Sébastien Gros

Within a decade, almost every major auto company, along with fleet operators such as Uber, have announced plans to put autonomous vehicles on the road. At the same time, electric vehicles are quickly emerging as a next-generation technology…

Artificial Intelligence · Computer Science 2018-12-13 Lina Al-Kanj , Juliana Nascimento , Warren B. Powell

We study the joint scheduling of behind-the-meter distributed energy resources (DERs), including flexible loads, renewable generation, and battery energy storage systems, under net energy metering tariffs with demand charges. The problem is…

Systems and Control · Electrical Eng. & Systems 2026-01-07 Ruixiao Yang , Gulai Shen , Ahmed S. Alahmed , Chuchu Fan

When sales of a product are affected by randomness in demand, retailers can use dynamic pricing strategies to maximise their profits. In this article the pricing problem is formulated as a stochastic optimal control problem, where the…

Optimization and Control · Mathematics 2017-10-17 Asbjørn N. Riseth , Jeff N. Dewynne , Chris L. Farmer

We present an online stochastic model predictive control framework for demand charge management for a grid-connected consumer with attached electrical energy storage. The consumer we consider must satisfy an inflexible but stochastic…

Systems and Control · Electrical Eng. & Systems 2020-07-07 Benjamin Flamm , Guillermo Ramos , Annika Eichler , John Lygeros

Coincident Peak (CP) pricing is widely used in U.S. electricity markets to allocate capacity and transmission costs. This paper develops a behavioral game-theoretic framework for CP-driven load shifting that couples a nonlinear…

Systems and Control · Electrical Eng. & Systems 2026-05-19 Qian Zhang , Sadie Zhao , Lucy Diao , Conleigh Byers , Yiling Chen , Derya Cansever , Le Xie

Our goal is to design distributed coordination strategies that enable agents to achieve global performance guarantees while minimizing the energy cost of their actions with an emphasis on feasibility for real-time implementation. As a…

Optimization and Control · Mathematics 2016-07-26 Hassan Jaleel , Jeff S. Shamma

Volatile electrical energy prices are a challenge and an opportunity for small and medium-size companies in energy-intensive industries. By using electrical energy storage and/or an adaptation of production processes, companies can…

Optimization and Control · Mathematics 2023-11-21 Michael Stiglmayr , Svenja Uhlemeyer , Björn Uhlemeyer , Markus Zdrallek

We consider the coupled problems of optimal thermostat programming and optimal pricing of electricity. Our framework consists of a single user and a single provider (a regulated utility). The provider sets prices for the user, who pays for…

Optimization and Control · Mathematics 2015-04-16 Reza Kamyar , Matthew M. Peet
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