• Title, Summary, Keyword: Incentive-Based Demand Response

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An Analysis on Power Demand Reduction Effects of Demand Response Systems in the Smart Grid Environment in Korea

  • Won, Jong-Ryul;Song, Kyung-Bin
    • Journal of Electrical Engineering and Technology
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    • v.8 no.6
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    • pp.1296-1304
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    • 2013
  • This study performed an analysis on power demand reduction effects exhibited by demand response programs, which are advanced from traditional demand-side management programs, in the smart grid environment. The target demand response systems for the analysis included incentive-based load control systems (2 month-ahead demand control system, 1~5 days ahead demand control system, and demand bidding system), which are currently implemented in Korea, and price-based demand response systems (mainly critical peak pricing system or real-time pricing system, currently not implemented, but representative demand response systems). Firstly, the status of the above systems at home and abroad was briefly examined. Next, energy saving effects and peak demand reduction effects of implementing the critical peak or real-time pricing systems, which are price-based demand response systems, and the existing incentive-based load control systems were estimated.

A Design of Incentive-based DR Program using Analytic Hierarchy Process (AHP) (계층분석과정(AHP)을 이용한 지원금 기반 수요반응프로그램 설계)

  • Kim, Dong-Min;Kim, Jin-O;Rhee, Chang-Ho
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.59 no.3
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    • pp.536-542
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    • 2010
  • This paper presents an unique approach to scheme a demand response (DR) program in the electricity market from a customer-oriented perspective, which is based on the analytic hierarchy process (AHP). The proposed program has the objective to maintain the system reliability at the emergency period, and it is designed as an incentive-based program (IBP) considering Korea power systems with the cost-based generation pool (CBP). The DR program using AHP could represent the mutual importance degrees of load curtailment criteria from the viewpoint of different load-holders, thus customers' participation in this program is determined by the incentive payments corresponding the specific load curtailment conditions. A test system for the case study is used to demonstrate the usefulness and applicability of the proposed approach, and the load profiles with the proposed DR program and the required incentive payments are obtained. The results show not only the enhancement of system reliability but also the economic benefit within Pareto-improvement.

An Analysis on the Effects of Demand Response in Electricity Markets (수요반응자원의 전력시장 도입효과 분석)

  • Yoo, Young-Gon;Song, Byung-Gun;Kang, Seung-Jin
    • Environmental and Resource Economics Review
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    • v.16 no.1
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    • pp.99-127
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    • 2007
  • When the margin between available capacity and demand is thin in a liberalized electricity market, prices rise steeply and system reliability is threatened. The principal response to these circumstances is often an assumption that price spikes and electricity shortages are the result of a failure to build sufficient new supplying facilities. It is, of course, often the case that additional investments in generation and network facilities would improve reliability, and such investments are often needed. But focusing on additional generation and transmission facilities for restoring balance to the grid overlooks the essential fact that reliability is a function of the relationship between supply and demand, imposing unnecessary costs on electric system. When the relationship is out of balance, the search for solutions must consider not only investments supply-side resources but also cost-effective demand-side resources such as accelerated load management, efficiency measures, and price-responsive load programs. Integrating demand resources into electricity markets can add enormous value to the electric system, widening the capacity margin, lowering costs and enhancing system reliability at the same time. This paper studies several challenges now facing electricity markets: demand-side management-especially, economic effects of demand response, potential reliability problems, market and system operation, CBP market improvements and so on. The paper concludes with a series of policy recommendations in five areas: (i) The Effects of efficient improvement to incorporate demand responses and demand-side resources into modem electricity markets, (ii) Fosteing price based demand response and (iii) improving incentive based demand response, (iv) strengthen demand response analysis and valuation, (v) integrating demand response into resource planning and adopting enabling technologies.

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A Study on Demand Pattern Analysis for Forecasting of Customer's Electricity Demand (수요측 전력사용량 예측을 위한 수요패턴 분석 연구)

  • Ko, Jong-Min;Yang, Il-Kwon;Yu, In-Hyeob
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.57 no.8
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    • pp.1342-1348
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    • 2008
  • One important objective of the electricity market is to decrease the price by ensuring stability in the market operation. Interconnected to this is another objective; namely, to realize sustainable consumption of electricity by equitably distributing the effects and benefits of participating in the market among all participants of the industry. One method that can help achieve these objectives is the ^{(R)}$demand-response program, - which allows for active adjustment of the loadage from the demand side in response to the price. The demand-response program requires a customer baseline load (CBL), a criterion of calculating the success of decreases in demand. This study was conducted in order to calculate undistorted CBL by analyzing the correlations between such external or seasonal factors as temperature, humidity, and discomfort indices and the amounts of electricity consumed. The method and findings of this study are accordingly explicated.

A Design of Incentive-based DR Program using Analytic Hierarchy Process(AHP) (계층분석과정(AHP)을 이용한 지원금 기반 수요반응프로그램 설계)

  • Kim, Dong-Min;Kim, Young-Hyun;Kim, Jin-O;Lee, Chang-Ho
    • Proceedings of the KIEE Conference
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    • pp.589_590
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    • 2009
  • This paper presents a unique approach to scheme a demand response (DR) program in the electricity market from a customer-oriented perspective, which is based on the analytic hierarchy process (AHP). The proposed program is designed as an incentive-based program (IBP) considering Korea power systems with the cost-based generation pool (CBP). And the proposed DR program has the objective to maximize social welfare corresponding customers‘ participation and the constraints including incentive payments, the specific load curtailment conditions and reserve-margin criterion. A test system for the case study is used to demonstrate the usefulness and applicability of the proposed approach, and the load profiles with the proposed DR program are obtained. The results show not only the revenue attributable to the avoided costs but also enhancement of system reliability.

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The Consumer Rationality Assumption in Incentive Based Demand Response Program via Reduction Bidding

  • Babar, Muhammad;Imthias Ahamed, T.P.;Alammar, Essam A.
    • Journal of Electrical Engineering and Technology
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    • v.10 no.1
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    • pp.64-74
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    • 2015
  • Because of the burgeoning demand of the energy, the countries are finding sustainable solutions for these emerging challenges. Demand Side Management is playing a significant role in managing the demand with an aim to support the electrical grid during the peak hours. However, advancement in controls and communication technologies, the aggregators are appearing as a third party entity in implementing demand response program. In this paper, a detailed mathematical framework is discussed in which the aggregator acts as an energy service provider between the utility and the consumers, and facilitate the consumers to actively participate in demand side management by introducing the new concept of demand reduction bidding (DRB) under constrained direct load control. Paper also presented an algorithm for the proposed framework and demonstrated the efficacy of the algorithm by considering few case studies and concluded with simulation results and discussions.

A Study for CBL(Customer Baseline Load) utilization in Day Ahead Demand Response operation (상시수요응답(Day Ahead Demand Response) 운영에서의 CBL 활용방안 연구)

  • Ko, Jong-Min;Yang, Il-Kwon;Song, Jae-Ju;Jin, Sung-Il
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.58 no.1
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    • pp.28-34
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    • 2009
  • In this study firstly we survey the calculation method and the characteristics of the way of estimating CBL(Customer BaseLine Load) that is important calculation tool for DRP internationally. Also we analyze the power consumption pattern using the 15 minutes load profiles of about 120,000 customers in domestic. Based on this pattern, we provide the CBL calculation method that can be utilized in DRP to save the cost, and analyze the accuracy of the CBL calculation proposed in this paper through the simulation.

A Study on LED Dimming Control Platform Based on XML (확장성표기언어 기반의 LED 조광제어 플랫폼에 관한 연구)

  • Choi, Jung-In;Ko, Won-Suk
    • Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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    • v.26 no.4
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    • pp.22-27
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    • 2012
  • In the study, an XML based platform is presented for LED dimming control. The XML platform is designed in an open architecture, providing with interoperability and scalability. Also, it enables the accommodation of off-the-shelf wired and wireless communication protocols and make it fast and easy to implement various application programs for LED dimming, comparing to the legacy platforms. In the study, a test best has been built for demonstration of the merits of the XML platform with dimming control by responding to the scenario of demand response event. Benefit calculation of the power saving and incentive from demand response shows the applicability and usefulness of the XML platform.

An Improvement Scheme of Direct Load Control Program for Electric Power Demand Management (합리적 전력수요관리를 위한 직접부하제어 사업의 개선 방안)

  • Kim, Kyu-Ho;Choi, Seung-Kil;Song, Kyung-Bin
    • Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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    • v.21 no.8
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    • pp.81-86
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    • 2007
  • This paper proposes the scheme to improve the current direct load control(DLC) program by inspecting the problems of the DLC program. In order to increase the number of the customers participating DLC program, a reduction of the base incentive and an increase of the direct load control incentive are suggested based on the interruption cost of electric power considering the characteristics of load types and the introduction of demand side bidding is recommended. Secondly, the standards of power system operations is required to control DLC program efficiently for the penalty, interruption times, the number of interrupting loads, notice time for the load interruption and the periods of the DLC program contract.

Dynamic Equivalent Battery as a Metric to Evaluate the Demand Response Performance of an EV Fleet

  • Yoon, Sung Hyun;Jin, Young Gyu;Yoon, Yong Tae
    • Journal of Electrical Engineering and Technology
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    • v.13 no.6
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    • pp.2220-2226
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    • 2018
  • Electric vehicles (EVs) are significant resources for demand response (DR). Thus, it is essential for EV aggregators to quantitatively evaluate their capability for DR. In this paper, a concept of dynamic equivalent battery (DEB) is proposed as a metric for evaluating the DR performance using EVs. The DEB is the available virtual battery for DR. The capacity of DEB is determined from stochastic calculation while satisfying the charging requirements of each EV, and it varies also with time. Further, a new indicator based on the DEB and time-varying electricity prices, named as value of DEB (VoDEB), is introduced to quantify the value of DEB coupled with the electricity prices. The effectiveness of the DEB and the VoDEB as metrics for the DR performance of EVs is verified with the simulations, where the difference of charging cost reduction between direct charging and optimized bidding methods is used to express the DR performance. The simulation results show that the proposed metrics accord well with the DR performance of an EV fleet. Thus, an EV aggregator may utilize the proposed concepts of DEB and VoDEB for designing an incentive scheme to EV users, who participate in a DR program.