Fairness indices for residential power demand management contracts

Abstract

Low-voltage distribution networks are facing the increasing penetration of electric vehicles, which can cause congestion in the form of undervoltage and overcurrent events. A possible mitigation strategy is asking residential users to reduce their power consumption below a given threshold if congestion risk is forecasted. Although active power reduction of loads does not necessarily entail direct economic losses to the residential customer, unlike the case of PV generation, this type of congestion mitigation method needs to be adjusted to be acceptable for the public, as it might affect user comfort. This paper presents a mitigation method in which several residential users accept to reduce their power demand in exchange for economic benefits. The solution is based on a set of contractual agreements that can be stipulated between residential users and their system operators. The contractual terms limit the time and duration of power reduction, in order not to compromise the comfort of the users. The fairness of different sets of contractual criteria is explored. In particular, it is assessed how the selection of the contractual agreement affects customers, depending on their locations.