Demand response scheme based on lottery-like rebates

Handle URI:
http://hdl.handle.net/10754/575795
Title:
Demand response scheme based on lottery-like rebates
Authors:
Schwartz, Galina A.; Tembine, Hamidou; Amin, Saurabh; Sastry, S. Shankar
Abstract:
In this paper, we develop a novel mechanism for reducing volatility of residential demand for electricity. We construct a reward-based (rebate) mechanism that provides consumers with incentives to shift their demand to off-peak time. In contrast to most other mechanisms proposed in the literature, the key feature of our mechanism is its modest requirements on user preferences, i.e., it does not require exact knowledge of user responsiveness to rewards for shifting their demand from the peak to the off-peak time. Specifically, our mechanism utilizes a probabilistic reward structure for users who shift their demand to the off-peak time, and is robust to incomplete information about user demand and/or risk preferences. We approach the problem from the public good perspective, and demonstrate that the mechanism can be implemented via lottery-like schemes. Our mechanism permits to reduce the distribution losses, and thus improve efficiency of electricity distribution. Finally, the mechanism can be readily incorporated into the emerging demand response schemes (e.g., the time-of-day pricing, and critical peak pricing schemes), and has security and privacy-preserving properties.
KAUST Department:
Computer, Electrical and Mathematical Sciences and Engineering (CEMSE) Division
Publisher:
Elsevier BV
Journal:
IFAC Proceedings Volumes
Conference/Event name:
Proceedings of the 19th IFAC World Congress, 2014
Issue Date:
24-Aug-2014
DOI:
10.3182/20140824-6-za-1003.02781
Type:
Conference Paper
ISSN:
14746670
ISBN:
9783902823625
Appears in Collections:
Conference Papers; Computer, Electrical and Mathematical Sciences and Engineering (CEMSE) Division

Full metadata record

DC FieldValue Language
dc.contributor.authorSchwartz, Galina A.en
dc.contributor.authorTembine, Hamidouen
dc.contributor.authorAmin, Saurabhen
dc.contributor.authorSastry, S. Shankaren
dc.date.accessioned2015-08-24T09:26:24Zen
dc.date.available2015-08-24T09:26:24Zen
dc.date.issued2014-08-24en
dc.identifier.isbn9783902823625en
dc.identifier.issn14746670en
dc.identifier.doi10.3182/20140824-6-za-1003.02781en
dc.identifier.urihttp://hdl.handle.net/10754/575795en
dc.description.abstractIn this paper, we develop a novel mechanism for reducing volatility of residential demand for electricity. We construct a reward-based (rebate) mechanism that provides consumers with incentives to shift their demand to off-peak time. In contrast to most other mechanisms proposed in the literature, the key feature of our mechanism is its modest requirements on user preferences, i.e., it does not require exact knowledge of user responsiveness to rewards for shifting their demand from the peak to the off-peak time. Specifically, our mechanism utilizes a probabilistic reward structure for users who shift their demand to the off-peak time, and is robust to incomplete information about user demand and/or risk preferences. We approach the problem from the public good perspective, and demonstrate that the mechanism can be implemented via lottery-like schemes. Our mechanism permits to reduce the distribution losses, and thus improve efficiency of electricity distribution. Finally, the mechanism can be readily incorporated into the emerging demand response schemes (e.g., the time-of-day pricing, and critical peak pricing schemes), and has security and privacy-preserving properties.en
dc.publisherElsevier BVen
dc.titleDemand response scheme based on lottery-like rebatesen
dc.typeConference Paperen
dc.contributor.departmentComputer, Electrical and Mathematical Sciences and Engineering (CEMSE) Divisionen
dc.identifier.journalIFAC Proceedings Volumesen
dc.conference.date2014-08-24en
dc.conference.nameProceedings of the 19th IFAC World Congress, 2014en
dc.conference.locationCape Town International Convention Centre, Cape Town, South Africaen
dc.contributor.institutionDepartment of Electrical Engineering and Computer Science, University of California, Berkeley, CA, United Statesen
dc.contributor.institutionDepartment of Civil and Environmental Engineering, Massachusetts Institute of Technology, Cambridge, MA, United Statesen
kaust.authorTembine, Hamidouen
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