A Hierarchical Control Framework With a Novel Bidding Scheme for Residential Community Energy Optimization

Residential energy optimization provides economic and reliability benefits to the electric utility and consumers. Two major challenges in community energy optimization are: 1) to efficiently coordinate among a large number of residential consumers' electric appliances and 2) to ensure participa...

Full description

Saved in:
Bibliographic Details
Published in:IEEE transactions on smart grid 2020-01, Vol.11 (1), p.710-719
Main Authors: Paudyal, Priti, Munankarmi, Prateek, Ni, Zhen, Hansen, Timothy M.
Format: Article
Language:English
Subjects:
Atmospheric modeling
Bidding strategy
Buildings
comfort indicator
Consumers
Customer satisfaction
demand response
Electric appliances
Electric utilities
hierarchical control framework
Home appliances
Household appliances
Incentives
Loyalty programs
Microgrids
Optimization
Power industry
Reduction
Residential communities
Residential energy
residential energy optimization
reward incentives
Utilities
Water heating
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Residential energy optimization provides economic and reliability benefits to the electric utility and consumers. Two major challenges in community energy optimization are: 1) to efficiently coordinate among a large number of residential consumers' electric appliances and 2) to ensure participating consumers are comfortable and are rewarded with financial incentives during demand reduction. This paper proposes a hierarchical control framework with a novel bidding scheme that manages the use of consumers' electric appliances while satisfying utility demand reduction requests. A new demand reduction bidding strategy is introduced for the efficient coordination among several local controllers (LCs) under a central controller (CC) in the proposed framework. Incentives are provided to the residential consumers for their participation, while considering their preferences, using a continuous reward structure. A simulation study on the 6-bus Roy Billinton test system with 1200 residential consumers demonstrates the financial benefits to the electric utility and consumers by performing a 6% demand reduction during peak times. The results show that the utility saves 28217, and a residential consumer earns 9.37 on average for a one-hour demand reduction event (e.g., reducing 1.2 MW peak power). The reward scheme designed from this framework is more economical to utilities compared to existing utility reward schemes.
ISSN:1949-3053
1949-3061
DOI:10.1109/TSG.2019.2927928