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Energies 2017, 10(10), 1537; doi:10.3390/en10101537

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

1
Department of Electrical and Computer Engineering, Sungkyunkwan University, 2006 Seobu-ro, Jangan-gu, Suwon 440-746, Korea
2
Korea Electrotechnology Research Institute, 111 Hanggaul-ro, Sangnok-gu, Ansan 426-910, Korea
*
Author to whom correspondence should be addressed.
Received: 5 September 2017 / Revised: 25 September 2017 / Accepted: 28 September 2017 / Published: 4 October 2017
(This article belongs to the Collection Smart Grid)
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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. View Full-Text
Keywords: demand response optimization; demand response strategy; demand response service provider demand response optimization; demand response strategy; demand response service provider
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Kang, J.; Lee, J.-H. Data-Driven Optimization of Incentive-based Demand Response System with Uncertain Responses of Customers. Energies 2017, 10, 1537.

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