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Revolutionizing Demand Response Management: Empowering Consumers through Power Aggregator and Right of Flexibility

Author

Listed:
  • Sadeq Neamah Bazoon Alhussein

    (Department of Electrical Engineering, Science and Research Branch, Islamic Azad University, Tehran 1477893855, Iran)

  • Roohollah Barzamini

    (Department of Electrical Engineering, Central Tehran Branch, Islamic Azad University, Tehran 1148963537, Iran)

  • Mohammad Reza Ebrahimi

    (Department of Electrical Engineering, Central Tehran Branch, Islamic Azad University, Tehran 1148963537, Iran)

  • Shoorangiz Shams Shamsabad Farahani

    (Department of Electrical Engineering, Islamshahr Branch, Islamic Azad University, Islamshahr 3314767653, Iran)

  • Mohammad Arabian

    (Department of Electrical Engineering, Central Tehran Branch, Islamic Azad University, Tehran 1148963537, Iran)

  • Aliyu M. Aliyu

    (College of Health and Science, School of Engineering, University of Lincoln, Lincoln LN6 7TS, UK)

  • Behnaz Sohani

    (College of Health and Science, School of Engineering, University of Lincoln, Lincoln LN6 7TS, UK)

Abstract

This paper introduces a groundbreaking approach to demand response management, aiming to empower consumers through innovative strategies. The key contribution is the concept of “acquiring flexibility rights”, wherein consumers engage with power aggregators to curtail energy usage during peak-load periods, receiving incentives in return. A flexibility right coefficient is introduced, allowing consumers to tailor their participation in demand response programs, ensuring their well-being. Additionally, a lighting intensity control system is developed to enhance residential lighting network efficiency. The study demonstrates that high-energy consumers, adopting a satisfaction factor of 10, can achieve over 61% in electricity cost savings by combining the lighting control system and active participation in demand response programs. This not only reduces expenses but also generates income through the sale of flexibility rights. Conversely, low-energy consumers can fully offset their expenses and accumulate over USD 33 in earnings through the installation of solar panels. This paper formulates an optimization problem considering flexibility rights, lighting control, and time-of-use tariff rates. An algorithm is proposed for a distributed solution, and a sensitivity analysis is conducted for evaluation. The proposed method showcases significant benefits, including cost savings and income generation for consumers, while contributing to grid stability and reduced blackout occurrences. Real data from a residential district in Tehran validates the method’s effectiveness. This study concludes that this approach holds promise for demand response management in smart grids, emphasizing the importance of consumer empowerment and sustainable energy practices.

Suggested Citation

  • Sadeq Neamah Bazoon Alhussein & Roohollah Barzamini & Mohammad Reza Ebrahimi & Shoorangiz Shams Shamsabad Farahani & Mohammad Arabian & Aliyu M. Aliyu & Behnaz Sohani, 2024. "Revolutionizing Demand Response Management: Empowering Consumers through Power Aggregator and Right of Flexibility," Energies, MDPI, vol. 17(6), pages 1-11, March.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:6:p:1419-:d:1357543
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    References listed on IDEAS

    as
    1. Tang, Rui & Wang, Shengwei & Li, Hangxin, 2019. "Game theory based interactive demand side management responding to dynamic pricing in price-based demand response of smart grids," Applied Energy, Elsevier, vol. 250(C), pages 118-130.
    2. Simona-Vasilica Oprea & Adela Bâra & George Adrian Ifrim, 2021. "Optimizing the Electricity Consumption with a High Degree of Flexibility Using a Dynamic Tariff and Stackelberg Game," Journal of Optimization Theory and Applications, Springer, vol. 190(1), pages 151-182, July.
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