Real-Time Price-Based Demand Response Management for Residential Appliances via Stochastic Optimization and Robust Optimization

This paper evaluates the real-time price-based demand response (DR) management for residential appliances via stochastic optimization and robust optimization approaches. The proposed real-time price-based DR management application can be imbedded into smart meters and automatically executed on-line...

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Bibliographic Details
Published in:	IEEE transactions on smart grid Vol. 3; no. 4; pp. 1822 - 1831
Main Authors:	Chen, Zhi, Wu, Lei, Fu, Yong
Format:	Journal Article
Language:	English
Published:	Piscataway IEEE 01.12.2012 The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subjects:	Deferrable task Electricity Home appliances interruptible task Linear programming Optimization real-time price-based demand response management Real-time systems residential appliances robust optimization Robustness stochastic optimization Stochastic processes Uncertainty
ISSN:	1949-3053, 1949-3061
Online Access:	Get full text
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Abstract	This paper evaluates the real-time price-based demand response (DR) management for residential appliances via stochastic optimization and robust optimization approaches. The proposed real-time price-based DR management application can be imbedded into smart meters and automatically executed on-line for determining the optimal operation of residential appliances within 5-minute time slots while considering uncertainties in real-time electricity prices. Operation tasks of residential appliances are categorized into deferrable/non-deferrable and interruptible/non-interruptible ones based on appliances' DR preferences as well as their distinct spatial and temporal operation characteristics. The stochastic optimization adopts the scenario-based approach via Monte Carlo (MC) simulation for minimizing the expected electricity payment for the entire day, while controlling the financial risks associated with real-time electricity price uncertainties via the expected downside risks formulation. Price uncertainty intervals are considered in the robust optimization for minimizing the worst-case electricity payment while flexibly adjusting the solution robustness. Both approaches are formulated as mixed-integer linear programming (MILP) problems and solved by state-of-the-art MILP solvers. The numerical results show attributes of the two approaches for solving the real-time optimal DR management problem for residential appliances.
AbstractList	This paper evaluates the real-time price-based demand response (DR) management for residential appliances via stochastic optimization and robust optimization approaches. The proposed real-time price-based DR management application can be imbedded into smart meters and automatically executed on-line for determining the optimal operation of residential appliances within 5-minute time slots while considering uncertainties in real-time electricity prices. Operation tasks of residential appliances are categorized into deferrable/non-deferrable and interruptible/non-interruptible ones based on appliances' DR preferences as well as their distinct spatial and temporal operation characteristics. The stochastic optimization adopts the scenario-based approach via Monte Carlo (MC) simulation for minimizing the expected electricity payment for the entire day, while controlling the financial risks associated with real-time electricity price uncertainties via the expected downside risks formulation. Price uncertainty intervals are considered in the robust optimization for minimizing the worst-case electricity payment while flexibly adjusting the solution robustness. Both approaches are formulated as mixed-integer linear programming (MILP) problems and solved by state-of-the-art MILP solvers. The numerical results show attributes of the two approaches for solving the real-time optimal DR management problem for residential appliances.
Author	Lei Wu Yong Fu Zhi Chen
Author_xml	– sequence: 1 givenname: Zhi surname: Chen fullname: Chen, Zhi – sequence: 2 givenname: Lei surname: Wu fullname: Wu, Lei – sequence: 3 givenname: Yong surname: Fu fullname: Fu, Yong
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SubjectTerms	Deferrable task Electricity Home appliances interruptible task Linear programming Optimization real-time price-based demand response management Real-time systems residential appliances robust optimization Robustness stochastic optimization Stochastic processes Uncertainty
Title	Real-Time Price-Based Demand Response Management for Residential Appliances via Stochastic Optimization and Robust Optimization
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