Demand response scheme based on lottery-like rebates
In this paper, we develop a novel mechanism for reducing volatility of residential demand for electricity. We construct a reward-based (rebate) mechanism that provides consumers with incentives to shift their demand to off-peak time. In contrast to most other mechanisms proposed in the literature, t...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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International Federation of Automatic Control
2016
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| Online Access: | http://hdl.handle.net/1721.1/101379 https://orcid.org/0000-0003-1554-015X |
| _version_ | 1811086420162379776 |
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| author | Schwartz, Galina A. Tembine, Hamidou Amin, Saurabh Sastry, S. Shankar |
| author2 | Massachusetts Institute of Technology. Department of Civil and Environmental Engineering |
| author_facet | Massachusetts Institute of Technology. Department of Civil and Environmental Engineering Schwartz, Galina A. Tembine, Hamidou Amin, Saurabh Sastry, S. Shankar |
| author_sort | Schwartz, Galina A. |
| collection | MIT |
| description | In this paper, we develop a novel mechanism for reducing volatility of residential demand for electricity. We construct a reward-based (rebate) mechanism that provides consumers with incentives to shift their demand to off-peak time. In contrast to most other mechanisms proposed in the literature, the key feature of our mechanism is its modest requirements on user preferences, i.e., it does not require exact knowledge of user responsiveness to rewards for shifting their demand from the peak to the off-peak time. Specifically, our mechanism utilizes a probabilistic reward structure for users who shift their demand to the off-peak time, and is robust to incomplete information about user demand and/or risk preferences. We approach the problem from the public good perspective, and demonstrate that the mechanism can be implemented via lottery-like schemes. Our mechanism permits to reduce the distribution losses, and thus improve efficiency of electricity distribution. Finally, the mechanism can be readily incorporated into the emerging demand response schemes (e.g., the time-of-day pricing, and critical peak pricing schemes), and has security and privacy-preserving properties. |
| first_indexed | 2024-09-23T13:25:38Z |
| format | Article |
| id | mit-1721.1/101379 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T13:25:38Z |
| publishDate | 2016 |
| publisher | International Federation of Automatic Control |
| record_format | dspace |
| spelling | mit-1721.1/1013792022-10-01T15:15:11Z Demand response scheme based on lottery-like rebates Schwartz, Galina A. Tembine, Hamidou Amin, Saurabh Sastry, S. Shankar Massachusetts Institute of Technology. Department of Civil and Environmental Engineering Amin, Saurabh In this paper, we develop a novel mechanism for reducing volatility of residential demand for electricity. We construct a reward-based (rebate) mechanism that provides consumers with incentives to shift their demand to off-peak time. In contrast to most other mechanisms proposed in the literature, the key feature of our mechanism is its modest requirements on user preferences, i.e., it does not require exact knowledge of user responsiveness to rewards for shifting their demand from the peak to the off-peak time. Specifically, our mechanism utilizes a probabilistic reward structure for users who shift their demand to the off-peak time, and is robust to incomplete information about user demand and/or risk preferences. We approach the problem from the public good perspective, and demonstrate that the mechanism can be implemented via lottery-like schemes. Our mechanism permits to reduce the distribution losses, and thus improve efficiency of electricity distribution. Finally, the mechanism can be readily incorporated into the emerging demand response schemes (e.g., the time-of-day pricing, and critical peak pricing schemes), and has security and privacy-preserving properties. National Science Foundation (U.S.) (Grant CNS-1239166) National Science Foundation (U.S.) (Grant CNS-0910711) National Science Foundation (U.S.) (CCF-0424422) 2016-02-29T18:19:30Z 2016-02-29T18:19:30Z 2014-08 Article http://purl.org/eprint/type/ConferencePaper 978-3-902823-62-5 1474-6670 http://hdl.handle.net/1721.1/101379 Schwartz, Galina A., Hamidou Tembine, Saurabh Amin, and S. Shankar Sastry. "Demand response scheme based on lottery-like rebates." 19th World Congress of the International Federation of Automatic Control (IFAC 2014) (August 2014). https://orcid.org/0000-0003-1554-015X en_US http://www.ifac-papersonline.net/Detailed/66679.html Proceedings of the 19th World Congress of the International Federation of Automatic Control (IFAC 2014) Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf International Federation of Automatic Control Other univ. web domain |
| spellingShingle | Schwartz, Galina A. Tembine, Hamidou Amin, Saurabh Sastry, S. Shankar Demand response scheme based on lottery-like rebates |
| title | Demand response scheme based on lottery-like rebates |
| title_full | Demand response scheme based on lottery-like rebates |
| title_fullStr | Demand response scheme based on lottery-like rebates |
| title_full_unstemmed | Demand response scheme based on lottery-like rebates |
| title_short | Demand response scheme based on lottery-like rebates |
| title_sort | demand response scheme based on lottery like rebates |
| url | http://hdl.handle.net/1721.1/101379 https://orcid.org/0000-0003-1554-015X |
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