Decision model for sustainable electricity procurement using nationwide demand response
- Resource Type
- Conference
- Authors
- Markle-Huss, J.; Feuerriegel, S.; Neumann, D.
- Source
- 2016 49th Hawaii International Conference on System Sciences (HICSS) System Sciences (HICSS), 2016 49th Hawaii International Conference on. :1010-1019 Jan, 2016
- Subject
- Communication, Networking and Broadcast Technologies
Computing and Processing
Power, Energy and Industry Applications
Load management
Load modeling
Optimization
Mathematical model
Analytical models
Renewable energy sources
Terminology
Demand Response
Demand Side Management
Renewable Energy Sources
Economic Potential
Operational Research Optimization
- Language
- ISSN
- 1530-1605
As part of the worldwide effort towards achieving sustainable energy generation, an increasing share of renewable energy sources are connected to the electricity networks. This intermittent electricity output from renewable energy resources causes changes in prices and feed-in volumes. One approach to compensate for the supply side fluctuations is the active management of the demand side via so-called Demand Response (DR). Demand Response is defined as providing incentives to electricity consumers to shift electricity consumption to the economically most favorable time. Analyzing such load shifts economically is challenging, as prices depend on the quantity requested. We analyze this interdependency by explicitly modeling the load dependence of electricity prices and thus develop a decision model for nationwide electricity expenses in the form of a quadratic optimization. Using real market data, we show a decrease in average electricity prices and price volatility.