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ThinkMind // GREEN 2016, The First International Conference on Green Communications, Computing and Technologies // View article green_2016_2_10_90024


Indirect Demand Side Management Program Under Real-Time Pricing in Smart Grids Using Oligopoly Market Model

Authors:
Poria Poria Hasanpor Divshali
Bong Jun Choi

Keywords: Demand side management; Imperfect competition market; Indirect control; Real-time pricing; Smart grid; Smart meter

Abstract:
The rise in electricity demand, environmental concerns, and economic issues have increased the importance of demand response in recent years. Among different incentive methods of demand side management (DSM) programs, real-time pricing (RTP) can adaptively control the electricity consumption while giving the decision authority to customers and satisfying the power system constraints. Although the existing RTP methods require a complicated computational process to determine the equilibrium point, this paper proposes a heuristic two-stage iterative method to quickly find the market equilibrium using the Cournot oligopoly competition model in a smart grid. The proposed method minimizes the cost for each customer by running a simple computational algorithm on each customer’s smart meter while also satisfying the power system constraints. The effectiveness and feasibility of the proposed method is demonstrated by conducting simulations in the IEEE 37-bus test system with about 1500 customers using real data sets of loads. The results show that the proposed technique can better manage the elastic loads in terms of power and cost in comparison with the existing methods and is quick enough to run in real-time.

Pages: 15 to 21

Copyright: Copyright (c) IARIA, 2016

Publication date: July 24, 2016

Published in: conference

ISSN: 2519-8483

ISBN: 978-1-61208-524-1

Location: Nice, France

Dates: from July 24, 2016 to July 28, 2016

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