Market implementation of multiple-arrival multiple-deadline differentiated energy services

Abstract

An increasing concern in power systems is on how to elicit flexibilities in demands for better supply/demand balance. To this end, several differentiated energy services have been put forward, wherein demands are discriminated by their different flexibility levels. Motivated by the duration-differentiated energy services, we have proposed energy services differentiated by durations, arrival times, and deadlines. The purpose of this paper is to study the market implementation of such multiplearrival multiple-deadline differentiated energy services. To verify the economic feasibility, we establish that in a forward market, there exists an efficient competitive equilibrium which attains the maximum social welfare. In addition, we show that future information will influence current decisions on power delivery by studying a special kind of causal allocation policy. Finally, we propose two tractable integer programs, namely the optimal arbitrage and the minimum-cost allocation problems, which can be embedded in a two-level hierarchical real-time implementation of differentiated energy services.

Comparison of Priority Service With Multilevel Demand Subscription

“…The results of these models are provided as inputs for the present work in which the performance of the two demand response schemes is compared in a real-time simulation framework that uses the price menu and subscription computed in [27] as input. Note that the aforementioned literature that is cited in the introduction [15]- [19] is mainly focused on the design and pricing of the service contract, as in the case of [27].…”

“…(1) For t = T, ) by an auxiliary variable θ and add the supporting hyperplanes as expressed by Eq. (19). As the algorithm evolves backwards in the number of stages, supporting hyperplanes are built around states in the set Γ t , in order to approximate the value functions of the preeceding stages.…”

“…Instead, product differentiation adopts the point of view that residential consumers treat electricity as a service with attributes that can be differentiated. This point of view has inspired various levels of differentiation in electricity delivery [15]- [19], some of which have been widely used in practice (including time of use pricing and demand charges [3]).…”