Improving social welfare by demand response general framework and quantitative characterization

Ding Xiang, Ermin Wei

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

1 Citation (Scopus)

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
Volume2018-January
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

Other

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

Fingerprint

Quadratic programming
Electricity
Industry
Power markets

Keywords

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

ASJC Scopus subject areas

  • Information Systems
  • Signal Processing

Cite this

Xiang, D., & Wei, E. (2018). Improving social welfare by demand response general framework and quantitative characterization. In 2017 IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017 - Proceedings (Vol. 2018-January, pp. 1030-1034). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/GlobalSIP.2017.8309117
Xiang, Ding ; Wei, Ermin. / Improving social welfare by demand response general framework and quantitative characterization. 2017 IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017 - Proceedings. Vol. 2018-January Institute of Electrical and Electronics Engineers Inc., 2018. pp. 1030-1034
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Xiang, D & Wei, E 2018, Improving social welfare by demand response general framework and quantitative characterization. in 2017 IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017 - Proceedings. vol. 2018-January, Institute of Electrical and Electronics Engineers Inc., pp. 1030-1034, 5th IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017, Montreal, Canada, 11/14/17. https://doi.org/10.1109/GlobalSIP.2017.8309117

Improving social welfare by demand response general framework and quantitative characterization. / Xiang, Ding; Wei, Ermin.

2017 IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017 - Proceedings. Vol. 2018-January Institute of Electrical and Electronics Engineers Inc., 2018. p. 1030-1034.

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

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Xiang D, Wei E. Improving social welfare by demand response general framework and quantitative characterization. In 2017 IEEE Global Conference on Signal and Information Processing, GlobalSIP 2017 - Proceedings. Vol. 2018-January. Institute of Electrical and Electronics Engineers Inc. 2018. p. 1030-1034 https://doi.org/10.1109/GlobalSIP.2017.8309117