We introduce and analyze Markov Decision Process (MDP) machines to model
individual devices which are expected to participate in future demand-response
markets on distribution grids. We differentiate devices into the following four
types: (a) optional loads that can be shed, e.g. light dimming; (b) deferrable
loads that can be delayed, e.g. dishwashers; (c) controllable loads with
inertia, e.g. thermostatically-controlled loads, whose task is to maintain an
auxiliary characteristic (temperature) within pre-defined margins; and (d)
storage devices that can alternate between charging and generating. Our
analysis of the devices seeks to find their optimal price-taking control
strategy under a given stochastic model of the distribution market.Comment: 8 pages, 8 figures, submitted IEEE CDC 201
