Improving social welfare by demand response general framework and quantitative characterization

Ding Xiang, Ermin Wei

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Scopus citations

Abstract

One way to improve the efficiency of the electricity system is by including demand participation in the market, as opposed to the traditional supply-follow-demand approach. In this work, we build upon literature to model a general T-period electricity market consisting of price-taking prosumers with multiple types of appliances, an utility company and a social planner distribution system operator (DSO), where we remove the restricting assumptions that prosumer cannot be net-sellers and EVs cannot discharge back to the grid. We show that a social welfare maximizing market equilibrium exists. Furthermore, through a case study with quadratic utility functions, we characterize explicitly the social welfare improvement, resulting from allowing prosumers to be a net-seller and EVs to discharge, as a function of utility function parameters by using quadratic programming duality.

Original languageEnglish (US)
Title of host publication2017 IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1030-1034
Number of pages5
ISBN (Electronic)9781509059904
DOIs
StatePublished - Mar 7 2018
Event5th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017 - Montreal, Canada
Duration: Nov 14 2017Nov 16 2017

Publication series

Name2017 IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017 - Proceedings
Volume2018-January

Other

Other5th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017
Country/TerritoryCanada
CityMontreal
Period11/14/1711/16/17

Keywords

  • Demand response
  • Electricity market
  • Net-seller
  • Prosumer
  • Social welfare

ASJC Scopus subject areas

  • Information Systems
  • Signal Processing

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