Incentives to Manipulate Demand Response Baselines With Uncertain Event Schedules

Ellman, Douglas; Xiao, Yuanzhang

doi:10.1109/tsg.2020.3024208

Cited by 43 publications

(5 citation statements)

References 14 publications

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“…According to the agreement, customers are provided with the time-of-use pricing, critical peak pricing, variable peak pricing, real-time pricing, and critical peak rebates. The customers' participation and successful response during these periods are reflected in their electricity bills [89], [90]. Any of these approaches present a significant improvement in the efficiency of energy resource utilization by focusing on the participation of the consumer side in the transactive energy market.…”

Section: Financial Incentivesmentioning

confidence: 99%

A Review on Active Customers Participation in Smart Grids

Schmitt

Bhatta

Chamana

et al. 2023

Journal of Modern Power Systems and Clean Energy

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Industrial, commercial, and residential facilities are progressively adopting automation and generation capabilities. By having flexible demand and renewable energy generation, traditional passive customers are becoming active participants in electric power system operations. Through profound coordination among grid operators and active customers, the facilities' capability for demand response (DR) and distributed energy resource (DER) management will be valuable asset for ancillary services (ASs). To comply with the increasing demand and flexible energy, utilities urgently require standards, regulations, and programs to efficiently handle load-side resources without trading off stability and reliability. This study reviews different types of customers' flexibilities for DR, highlighting their capabilities and limitations in performing local ancillary services (LASs), which should benefit the power grid by profiting from it through incentive mechanisms. Different financial incentives and techniques employed around the world are presented and discussed. The potential barriers in technical and regulatory aspects are successfully identified and potential solutions along with future guidance are discussed.

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Section: Financial Incentivesmentioning

confidence: 99%

A Review on Active Customers Participation in Smart Grids

Schmitt

Bhatta

Chamana

et al. 2023

Journal of Modern Power Systems and Clean Energy

View full text Add to dashboard Cite

show abstract

“…Price incentives duly included in a demand response program, or price-based demand response (PBDR), can lead consumers to adapt their consumption at predetermined times, complying with events determined by the concessionaire and providing a pattern of demand compatible with the determined planning [3]. Recently, consumer flexibility to demand response programs has been strongly highlighted with respect to capabilities and limitations [4], as well as the technical and regulatory barriers involved in giving demand response approaches the necessary/desired implementation.…”

Section: Literature Reviewmentioning

confidence: 99%

An Alternative Regulation of Compensation Mechanisms for Electric Energy Transgressions of Service Quality Limits in Dispersed and Seasonal Areas

de Bitencourt,

Bernardon,

Eichkoff

et al. 2023

Energies

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The evaluation of the quality of electric power distribution services in Brazil is regulated and monitored by the National Electric Energy Agency ANEEL, which uses metrics related to the duration frequency of power interruptions that occur in the power utilities’ networks. The methodology applied by the agency to establish financial compensation due to violations of the quality standards does not take into consideration the consumers’ production industry when establishing compensation for the transgression of service quality indicators. This study will analyze a case study of a group of industrial consumers linked to agribusiness in the southern region of Brazil, which have strongly seasonal use of distribution networks and are scattered in large, dispersed areas. Based on the evaluation of the impact of service quality indicators on financial compensation, a regulatory mechanism is proposed in the form of an interruptible tariff duly quantified in the form of a non-linear programming problem to find a discount range for uninterruptible tariffs. The results obtained with the real data for the group of irrigating consumers demonstrate the feasibility regarding the application of the proposed approach, whether due to the discounts offered or even the repercussions of the calculated financial amounts.

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“…In particular, during uncertain DR events' schedules, users could artificially inflate BL, which would have a significant impact on the effectiveness of the programs [73].…”

Section: Programs Driven By Market Incentives and Manipulation Risksmentioning

confidence: 99%

Demand Response Impact Evaluation: A Review of Methods for Estimating the Customer Baseline Load

et al. 2022

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Climate neutrality is one of the greatest challenges of our century, and a decarbonised energy system is a key step towards this goal. To this end, the electricity system is expected to become more interconnected, digitalised, and flexible by engaging consumers both through microgeneration and through demand side flexibility. A successful use of these flexibility tools depends widely on the evaluation of their effects, hence the definition of methods to assess and evaluate them is essential for their implementation. In order to enable a reliable assessment of the benefits from participating in demand response, it is necessary to define a reference value (“baseline”) to allow for a fair comparison. Different methodologies have been investigated, developed, and adopted for estimating the customer baseline load. The article presents a structured overview of methods for the estimating the customer baseline load, based on a review of academic literature, existing standardisation efforts, and lessons from use cases. In particular, the article describes and focuses on the different baseline methods applied in some European H2020 projects, showing the results achieved in terms of measurement accuracy and costs in real test cases. The most suitable methodology choice among the several available depends on many factors. Some of them can be the function of the Demand Response (DR) service in the system, the broader regulatory framework for DR participation in wholesale markets, or the DR providers characteristics, and this list is not exclusive. The evaluation shows that the baseline methodology choice presents a trade-off among complexity, accuracy, and cost.

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Incentives to Manipulate Demand Response Baselines With Uncertain Event Schedules

Cited by 43 publications

References 14 publications

A Review on Active Customers Participation in Smart Grids

A Review on Active Customers Participation in Smart Grids

An Alternative Regulation of Compensation Mechanisms for Electric Energy Transgressions of Service Quality Limits in Dispersed and Seasonal Areas

Demand Response Impact Evaluation: A Review of Methods for Estimating the Customer Baseline Load

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