Abstract

This paper contributes to the well-known challenge of active user participation in demand side management (DSM). In DSM, there is a need for modern pricing mechanisms that will be able to effectively incentivize selfishly behaving users in modifying their energy consumption pattern towards system-level goals like energy efficiency. Three generally desired properties of DSM algorithms are: user satisfaction, energy cost minimization and fairness. In this paper, a personalized–real time pricing (P-RTP) mechanism design framework is proposed that fairly allocates the energy cost reduction only to the users that provoke it. Thus, the proposed mechanism achieves significant reduction of the energy cost without sacrificing at all the welfare (user satisfaction) of electricity consumers. The business model that the proposed mechanism envisages is highly competitive flexibility market environments as well as energy cooperatives.

Details

Title
Personalized real time pricing for efficient and fair demand response in energy cooperatives and highly competitive flexibility markets
Author
Tsaousoglou, Georgios 1 ; Efthymiopoulos, Nikolaos 1 ; Makris, Prodrommos 1 ; Varvarigos, Emmanouel 2 

 Department of Electrical and Computer Engineering, Institute of Communication and Computer Systems, National Technical University of Athens, Athens, Greece 
 Department of Electrical and Computer Engineering, Institute of Communication and Computer Systems, National Technical University of Athens, Athens, Greece; Electrical and Computer Systems Engineering, Monash University, Melbourne, Australia 
Pages
151-162
Publication year
2019
Publication date
Jan 2019
Publisher
The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
ISSN
21965625
e-ISSN
21965420
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2120012789
Copyright
Journal of Modern Power Systems and Clean Energy is a copyright of Springer, (2018). All Rights Reserved., © 2018. This work is published under http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.