Demand Response for Residential Appliances in a Smart Electricity Distribution Network: Utility and Customer Perspectives

This thesis introduces advanced Demand Response algorithms for residential appliances to provide benefits for both utility and customers. The algorithms are engaged in scheduling appliances appropriately in a critical peak day to alleviate network peak, adverse voltage conditions and wholesale price spikes also reducing the cost of residential energy consumption. Initially, a demand response technique via customer reward is proposed, where the utility controls appliances to achieve network improvement. Then, an improved real-time pricing scheme is introduced and customers are supported by energy management schedulers to actively participate in it. Finally, the demand response algorithm is improved to provide frequency regulation services

Demand Response Strategy Based on Reinforcement Learning and Fuzzy Reasoning for Home Energy Management

As energy demand continues to increase, demand response (DR) programs in the electricity distribution grid are gaining momentum and their adoption is set to grow gradually over the years ahead. Demand response schemes seek to incentivise consumers to use green energy and reduce their electricity usage during peak periods which helps support grid balancing of supply-demand and generate revenue by selling surplus of energy back to the grid. This paper proposes an effective energy management system for residential demand response using Reinforcement Learning (RL) and Fuzzy Reasoning (FR). RL is considered as a model-free control strategy which learns from the interaction with its environment by performing actions and evaluating the results. The proposed algorithm considers human preference by directly integrating user feedback into its control logic using fuzzy reasoning as reward functions. Q-learning, a RL strategy based on a reward mechanism, is used to make optimal decisions to schedule the operation of smart home appliances by shifting controllable appliances from peak periods, when electricity prices are high, to off-peak hours, when electricity prices are lower without affecting the customer’s preferences. The proposed approach works with a single agent to control 14 household appliances and uses a reduced number of state-action pairs and fuzzy logic for rewards functions to evaluate an action taken for a certain state. The simulation results show that the proposed appliances scheduling approach can smooth the power consumption profile and minimise the electricity cost while considering user’s preferences, user’s feedbacks on each action taken and his/her preference settings. A user-interface is developed in MATLAB/Simulink for the Home Energy Management System (HEMS) to demonstrate the proposed DR scheme. The simulation tool includes features such as smart appliances, electricity pricing signals, smart meters, solar photovoltaic generation, battery energy storage, electric vehicle and grid supply.Peer reviewe

Simplified Algorithm for Dynamic Demand Response in Smart Homes Under Smart Grid Environment

Under Smart Grid environment, the consumers may respond to incentive--based smart energy tariffs for a particular consumption pattern. Demand Response (DR) is a portfolio of signaling schemes from the utility to the consumers for load shifting/shedding with a given deadline. The signaling schemes include Time--of--Use (ToU) pricing, Maximum Demand Limit (MDL) signals etc. This paper proposes a DR algorithm which schedules the operation of home appliances/loads through a minimization problem. The category of loads and their operational timings in a day have been considered as the operational parameters of the system. These operational parameters determine the dynamic priority of a load, which is an intermediate step of this algorithm. The ToU pricing, MDL signals, and the dynamic priority of loads are the constraints in this formulated minimization problem, which yields an optimal schedule of operation for each participating load within the consumer provided duration. The objective is to flatten the daily load curve of a smart home by distributing the operation of its appliances in possible low--price intervals without violating the MDL constraint. This proposed algorithm is simulated in MATLAB environment against various test cases. The obtained results are plotted to depict significant monetary savings and flattened load curves.Comment: This paper was accepted and presented in 2019 IEEE PES GTD Grand International Conference and Exposition Asia (GTD Asia). Furthermore, the conference proceedings has been published in IEEE Xplor

Distributed Load Scheduling in Residential Neighborhoods for Coordinated Operation of Multiple Home Energy Management Systems

Recently, home energy management systems (HEMS) are gaining more popularity enabling customers to minimize their electricity bill under time-varying electricity prices. Although they offer a promising solution for better energy management in smart grids, the uncoordinated and autonomous operation of HEMS may lead to some operational problems at the grid level. This paper aims to develop a coordinated framework for the operation of multiple HEMS in a residential neighborhood based on the optimal and secure operation of the grid. In the proposed framework customers cooperate to optimize energy consumption at the neighborhood level and prevent any grid operational constraints violation. A new price-based global and individualized incentives are proposed for customers to respond and adjust loads. The individual customers are rewarded for their cooperation and the network operator benefits by eliminating rebounding network peaks. The alternating direction method of multipliers (ADMM) technique is used to implement coordinated load scheduling in a distributed manner reducing the computational burden and ensure customer privacy. Simulation results demonstrate the efficacy of the proposed method in maintaining nominal network conditions while ensuring benefits for individual customers as well as grid operators

Energy Optimization and Coordination Frameworks for Smart Homes Considering Incentives From Discomfort and Market Analysis

The electricity demand is increasing with the growing use of electricity-based appliances in today’s world. The residential sector’s electricity consumption share is also increasing. Demand response (DR) is a typical way to schedule consumers’ energy consumption and help utility to reduce the peak load demand. Residential demand management can contribute to reduce peak electric demand, decrease electricity costs, and maintain grid reliability. Though the demand management has benefits to the utility and the consumers, controlling the consumers electricity consumption provides inconvenience to the consumers. The challenge here is to properly address the customers’ inconvenience to encourage them to participate and meanwhile satisfy the required demand reduction efficiently. In this work, new incentive-based demand management schemes for residential houses are designed and implemented. This work investigates two separate DR frameworks designed with different demand reduction coordination strategies. The first framework design constitutes a utility, several aggregators, and residential houses participating in DR program. Demand response potential (DRP), an indicator of whether an appliance can contribute to the DR, guides the strategic allocation of the demand limit to the aggregators. Each aggregator aggregates the DRP of all the controllable appliances under it and sends to the utility. The utility allocates different demand limits to the aggregators based on their respective DRP ratios. Participating residential customers are benefited with financial compensation with consideration of their inconvenience. Two scenarios are discussed in this approach with DRP. One where the thermostatically controlled loads (TCLs) are controlled. The thermal comfort of residents and rewards are used to evaluate the demand response performance. The other scenario includes the time-shiftable appliances control with the same framework. The second framework is a three-level hierarchical control framework for large-scale residential DR with a novel bidding scheme and market-level analysis. It comprises of several residential communities, local controllers (LCs), a central controller (CC), and the electricity market. A demand reduction bidding strategy is introduced for the coordination among several LCs under a CC in this framework. Incentives are provided to the participating residential consumers, while considering their preferences, using a continuous reward structure. A simulation study on the 6-bus Roy Billinton Test System with 1;200 residential consumers demonstrates the financial benefits to both the electric utility and consumers

The Role of Behavioural Economics in Energy and Climate Policy

This article explores how behavioural economics can be applied to energy and climate policy. We present an overview of main concepts of behavioural economics and discuss how they differ from the assumptions of neoclassical economics. Next, we discuss how behavioural economics applies to three areas of energy policy: (1) consumption and habits, (2) investment in energy efficiency, and (3) provision of public goods and support for pro-environmental behaviour. We conclude that behavioural economics seems unlikely to provide the magic bullet to reduce energy consumption by the magnitude required by the International Energy Agency's “450” climate policy scenario. However it offers new suggestions as to where to start looking for potentially sustainable changes in energy consumption. We believe that the most useful role within climate policy is in addressing issues of public perception of the affordability of climate policy and in facilitating the creation of a more responsive energy demand, better capable of responding to weather-induced changes in renewable electricity supply

Electricity Market Designs for Demand Response from Residential Customers

The main purpose of this dissertation is to design an appropriate tariff program for residential customers that encourages customers to participate in the system while satisfying market operators and utilities goals. This research investigates three aspects critical for successful programs: tariff designs for DR, impact of renewable on such tariffs, and load elasticity estimates. First, both categories of DR are modeled based on the demand-price elasticity concept and used to design an optimum scheme for achieving the maximum benefit of DR. The objective is to not only reduce costs and improve reliability but also to increase customer acceptance of a DR program by limiting price volatility. A time of use (TOU) program is considered for a PB scheme designed using a monthly peak and off peak tariff. For the IBDR, a novel optimization is proposed that in addition to calculation of an adequate and a reasonable amount of load change for the incentive also finds the best times to request DR. Second, the effect of both DR programs under a high penetration of renewable resources is investigated. LMP variation after renewable expansion is more highly correlated with renewable’s intermittent output than the load profile. As a result, a TOU program is difficult to successfully implement; however, analysis shows IBDR can diminish most of the volatile price changes in WECC. To model risk associated with renewable uncertainty, a robust optimization is designed considering market price and elasticity uncertainty. Third, a comprehensive study to estimate residential load elasticity in an IBDR program. A key component in all demand response programs design is elasticity, which implies customer reaction to LSEs offers. Due to limited information, PB elasticity is used in IBDR as well. Customer elasticity is calculated using data from two nationwide surveys and integrated with a detailed residential load model. In addition, IB elasticity is reported at the individual appliance level, which is more effective than one for the aggregate load of the feeder. Considering the importance of HVAC in the aggregate load signal, its elasticity is studied in greater detail and estimated for different customer groupings