Novel Single Group-Based Indirect Customer Baseline Load Calculation Method for Residential Demand Response

Hyunyong Lee,Byung-Tak Lee,Seongcheol Kim,Seung-Hun Oh,Hyunseok Jang,Nac-Woo Kim

doi:10.1109/access.2021.3120099

Abstract

Demand response (DR) is a voluntary program that encourages related stakeholders, in this case electricity consumers, to cut down on usage during periods of high electricity load. One key to fully exploiting DR is to encourage residential customers to join the DR program. Unlike in the DR programs for commercial and industrial customers, for the successful operation of the residential DR program, several issues have to be addressed, one of which is to provide a group-level incentive to participating customers. In particular, the issue comes up when the incentive calculated for a group is not equal to the aggregated incentives for each customer (i.e., non-equal incentive problem). The non-equal incentive problem deteriorates the successful operation of residential DR by decreasing the motivation of DR operators and customers. We first prove the non-equal incentive problem through mathematical and experimental methods. We then propose the novel single group-based indirect incentive calculation method. The basic idea of our approach is to indirectly calculate the incentive for each customer not using the customer’s data but using the data of other customers of the same DR group. Through experiments involving the electricity usage data of 42,193 households and the real DR events in Korea, we show that our method solves the non-equal incentive problem in most cases. Furthermore, our method improves the accuracy of the baseline estimation (used for calculating the contribution).

Highlights

Demand response (DR) can handle the occasional high electricity load in an inexpensive manner [1], [2]
We prove the usefulness of our method in solving the non-equal incentive problem and calculating group-level customer baseline load (CBL) accurately through extensive experiments using real-world data including residential DR events
With CBLtOP, one common observation is that the difference increases as the size of DR groups increases. This is because errors in calculating CBLti,OP for customers in the same DR group are cumulated

Summary

Introduction

Demand response (DR) can handle the occasional high electricity load in an inexpensive manner [1], [2]. The DR attempts to shift the electricity load of the end customer when electricity demand surges through incentive- or pricing-based policies [3], [4]. An ISO who coordinates, controls, and monitors the operation of the electrical power system can reduce the cost of the investment by lowering the peak electricity load and enhancing the reliability of the power system [5], [6]. The end customers can obtain incentives or reduce their electricity consumption costs by reducing their electricity usage. Electricity customers including commercial, industrial, and other types of customers join the DR program (managed by an ISO) through DR operators, to reduce electricity usage when requested. ISO issues a DR event when electricity demand surges to have the peak demand reduced. ISO provides incentives to customers as much as they reduced through the corresponding DR operators

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Conclusion