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Risk-Aware Demand Management of Aggregators Participating in Energy Programs with Utilities

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Energy Markets and Responsive Grids

Part of the book series: The IMA Volumes in Mathematics and its Applications ((IMA,volume 162))

Abstract

Electric utilities typically offer demand-side management (DSM) programs in order to reduce peak demand and to shift supply risks. These same programs engender a new business model, that of the energy aggregators. Energy aggregators seek to harvest the DSM incentives by strategically deferring the loads under their control. Examples of deferrable loads are electric vehicles (EVs) and heating, ventilation, and air-conditioning (HVAC) systems. To choose appropriately from a utility’s menu of programs, the aggregator must forecast both temperature and load and should also estimate the uncertainties associated with these forecasts. Further, the aggregator can work to mitigate these uncertainties by managing flexible loads under their control.

We propose a formulation that unifies the various kinds of deferrable loads and explicitly balances the trade-off between user discomfort and monetary costs. Our main contribution comes from incorporating the uncertainty of temperature and load forecasts into the optimal choice of DSM program selection.

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Author information

Authors and Affiliations

  1. Google, Inc., 1600 Amphitheatre Pkwy, Mountain View, CA, 94043, USA

    William D. Heavlin & Ana Radovanović

  2. Kakao Mobility, 231, Pangyoyeok-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, Republic of Korea, 13494

    Seungil You

  3. University of Chicago, 5807 S Woodlawn Avenue, Chicago, IL, 60637, USA

    Varun Gupta

Authors
  1. William D. Heavlin
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  2. Ana Radovanović
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  3. Varun Gupta
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  4. Seungil You
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Editor information

Editors and Affiliations

  1. Department of Electrical and Computer Engineering, University of Florida, Gainesville, Florida, USA

    Sean Meyn

  2. Technological Leadership Institute, University of Minnesota, Minneapolis, Minnesota, USA

    Tariq Samad

  3. Department of Electrical Engineering and Computer Science, University of Michigan, Ann Arbor, Michigan, USA

    Ian Hiskens

  4. Department of Electronic Systems, Aalborg University, Aalborg, Denmark

    Jakob Stoustrup

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Heavlin, W.D., Radovanović, A., Gupta, V., You, S. (2018). Risk-Aware Demand Management of Aggregators Participating in Energy Programs with Utilities. In: Meyn, S., Samad, T., Hiskens, I., Stoustrup, J. (eds) Energy Markets and Responsive Grids. The IMA Volumes in Mathematics and its Applications, vol 162. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-7822-9_18

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