1. Impact of energy price scheme and rewarding strategies on mobilizing the flexibility of residential end-users and aggregator’s profit
- Author
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Vahid Rasouli, Álvaro Gomes, and Carlos Henggeler Antunes
- Subjects
Demand-side management ,Demand-side flexibility ,Demand response ,Smart grid ,Mixed-integer linear programming ,Production of electric energy or power. Powerplants. Central stations ,TK1001-1841 - Abstract
In incentive-based demand response programs, the aggregator sends reward signals to the consumers to stimulate consumption changes for mobilizing their flexibility in energy end-uses, which can then be traded in different markets. Therefore, the amount of flexibility available for being collected and traded depends on reward signals, among other factors. Hence, the aggregator needs to anticipate how the end-users will respond to the reward signals. In the presence of time-of-day tariffs, from the end-users’ perspective, those reward signals can change the impact of the cost per unit of energy in different periods of the day. Thus, the aggregation of residential flexibility requires grasping how the energy price scheme (the prices at which the end-user purchases the energy from the retailer) interacts with the reward signals. In this study, the retailer and the aggregator are separate entities. Therefore, the aggregator does not have direct access to the end-users’ energy pricing data. This paper presents a study to show the impact of different energy pricing schemes on mobilizing the flexibility of a group of residential end-users and the aggregator’s profit. Accordingly, different end-use profiles, a range of reward values, and two different rewarding strategies are considered. Two separate mixed integer linear programing models are proposed, which are associated with the end-user’s and the aggregator’s problems. The objective of the aggregator’s problem is to maximize the profit by identifying which end-users’ flexibility will be selected to form the tradable aggregated flexibility. From the end-users’ perspective, the objectives are to minimize the energy cost and the potential discomfort inflicted by changing the regular operation of appliances. The results show the effectiveness of the proposed methodology to analyze the impact of energy price scheme and rewarding strategies on assembling flexibility and the aggregation profitability.
- Published
- 2024
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