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Energies 2018, 11(9), 2444; https://doi.org/10.3390/en11092444

Demand-Side Management with a State Space Consideration

Department of Electrical and Computer Engineering, United States Naval Academy, Annapolis, MD 21402, USA
Received: 6 August 2018 / Revised: 3 September 2018 / Accepted: 13 September 2018 / Published: 14 September 2018
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Abstract

Power networks are gateways to transfer power from generators to end-users. Often, it is assumed that the transfer occurs freely without any limiting factors. However, power flows over a network can be limited by predetermined limits that may come from physical reasons, such as line capacity or Kirchhoff’s laws. When flow is constrained by these limits, this is called congestion, which reduces the energy efficiency and splits the price for electricity across the congested lines. One promising, cost-effective way to relieve the impact of the congestion is demand-side management (DSM). However, it is unclear how much DSM can impact congestion and where it can control the demand. This paper proposes a new DSM mechanism based on locational willingness-to-pay (WTP) centered around income statistics; utilizes a state-space tool to determine the possibility to alter prices by DSM; and formulates a convex optimization problem to decide the DSM. The proposed methodology is tested on IEEE (Institute of Electrical and Electronics Engineers) systems with two commonly used objectives: cost minimization and social welfare maximization. View Full-Text
Keywords: demand-side management (DSM); multiparametric programming; optimal power flow (OPF); state space; locational marginal price (LMP) demand-side management (DSM); multiparametric programming; optimal power flow (OPF); state space; locational marginal price (LMP)
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
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Oh, H. Demand-Side Management with a State Space Consideration. Energies 2018, 11, 2444.

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