Hierarchical and Distributed Architecture for Large-Scale Residential Demand Response Management

The implementation of smart grid brings several challenges to the power system. The ‘prosumer’ concept, proposed by the smart grid, allows small-scale ‘nano-grids’ to buy or sell electric power at their own discretion. One major problem in integrating prosumers is that they tend to follow the same pattern of generation and consumption, which is un-optimal for grid operations. One tool to optimize grid operations is demand response (DR). DR attempts to optimize by altering the power consumption patterns. DR is an integrated tool of the smart grid. FERC Order No. 2222 caters for distributed energy resources, including demand response resources, in participating in energy markets. However, DR contribution of an average residential energy consumer is insignificant. Most residential energy consumers pay a flat price for their energy usage and the established market for residential DR is quite small. In this dissertation, a survey is carried out on the current state-of-the-art in DR research and generalizations of the mathematical models are made. Additionally, a service provider model is developed along with an incentive program and user interfaces (UI). These UIs and incentive program are designed to be attractive and easily comprehended by a large customer base. Furthermore, customer behavior models are developed that characterize the potential customer base, allowing a demand response aggregator to understand and quantify the quality of the customer. Optimization methods for DR management with various characteristics are also explored in this dissertation. Moreover, A scalable demand response management framework that can incorporate millions of participants in the program is introduced. The framework is based on a hierarchical architecture. To improve DR management, hierarchical load forecasting method is studied. Specifically, optimal combination method for hierarchical forecast reconciliation is applied to the DR program. It is shown that the optimal combination for reconciliation of hierarchical predictions could reduce the stress levels of the consumer close to the ideal values for all scenarios