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

  • William D. Heavlin
  • Ana Radovanović
  • Varun Gupta
  • Seungil You
Chapter
Part of the The IMA Volumes in Mathematics and its Applications book series (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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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  • William D. Heavlin
    • 1
  • Ana Radovanović
    • 1
  • Varun Gupta
    • 3
  • Seungil You
    • 2
  1. 1.Google, Inc.Mountain ViewUSA
  2. 2.Kakao MobilityBundang-gu, Seongnam-siRepublic of Korea
  3. 3.University of ChicagoChicagoUSA

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