Modeling Load Recovery Impact for Demand Response Applications

• Published in: IEEE transactions on power systems Vol. 28; no. 2; pp. 1216 - 1225
• Main Authors: Nguyen, D. Thanh, Negnevitsky, Michael, de Groot, Martin
• Format: Journal Article
• Language: English
• Published: New York IEEE 01-05-2013; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Brownian motion; Conferences; Demand response; demand response exchange; demand response scheduling; Economic impact; Economics; Electric power generation; Electricity; Estimation; Load management; Load modeling; load recovery; Mathematical model; Mathematical models; Power systems; Recovery; Scheduling; securitization; Tasks
• ISSN: 0885-8950; 1558-0679
• DOI: 10.1109/TPWRS.2012.2211625

In this paper we develop a novel mathematical model to describe the localized economic impact of load recovery by electricity consumers following demand response (DR) event participation. In this model-termed "securitization"-cost and benefit associated with an amount of load recovery change exponentially with time-varying stochastic discount rates. These volatile rates, which can be estimated using the principle of Brownian motion, are further examined via case studies on the Roy Billinton test system. A formal application of the proposed recovery model to the crucial task of global DR scheduling is then studied. The study indicates that it is possible to optimize a DR schedule to cater for uncertainty in the subsequent load recovery.