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Data-Driven Optimization of Incentive-based Demand Response System with Uncertain Responses of Customers

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  • Jimyung Kang

    (Department of Electrical and Computer Engineering, Sungkyunkwan University, 2006 Seobu-ro, Jangan-gu, Suwon 440-746, Korea
    Korea Electrotechnology Research Institute, 111 Hanggaul-ro, Sangnok-gu, Ansan 426-910, Korea)

  • Jee-Hyong Lee

    (Department of Electrical and Computer Engineering, Sungkyunkwan University, 2006 Seobu-ro, Jangan-gu, Suwon 440-746, Korea)

Abstract

Demand response is nowadays considered as another type of generator, beyond just a simple peak reduction mechanism. A demand response service provider (DRSP) can, through its subcontracts with many energy customers, virtually generate electricity with actual load reduction. However, in this type of virtual generator, the amount of load reduction includes inevitable uncertainty, because it consists of a very large number of independent energy customers. While they may reduce energy today, they might not tomorrow. In this circumstance, a DSRP must choose a proper set of these uncertain customers to achieve the exact preferred amount of load curtailment. In this paper, the customer selection problem for a service provider that consists of uncertain responses of customers is defined and solved. The uncertainty of energy reduction is fully considered in the formulation with data-driven probability distribution modeling and stochastic programming technique. The proposed optimization method that utilizes only the observed load data provides a realistic and applicable solution to a demand response system. The performance of the proposed optimization is verified with real demand response event data in Korea, and the results show increased and stabilized performance from the service provider’s perspective.

Suggested Citation

  • Jimyung Kang & Jee-Hyong Lee, 2017. "Data-Driven Optimization of Incentive-based Demand Response System with Uncertain Responses of Customers," Energies, MDPI, vol. 10(10), pages 1-17, October.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:10:p:1537-:d:114079
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    References listed on IDEAS

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    Cited by:

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    2. Mohseni, Soheil & Brent, Alan C. & Kelly, Scott & Browne, Will N., 2022. "Demand response-integrated investment and operational planning of renewable and sustainable energy systems considering forecast uncertainties: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
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    4. Jimyung Kang & Soonwoo Lee, 2018. "Data-Driven Prediction of Load Curtailment in Incentive-Based Demand Response System," Energies, MDPI, vol. 11(11), pages 1-14, October.
    5. Venkat Durvasulu & Timothy M. Hansen, 2018. "Benefits of a Demand Response Exchange Participating in Existing Bulk-Power Markets," Energies, MDPI, vol. 11(12), pages 1-21, December.

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