The development of demand elasticity model for demand response in the retail market environment

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Abstract

In the context of liberalized energy market, increase in distributed generation, storage and demand response has expanded the price elasticity of demand, thus causing the addition of uncertainty to the supply-demand chain of power system. In order to cope with the challenges of demand uncertainty under the unbundled electricity market, the concept of Market-based Control Mechanism (MCM) in retail market environment has been emerging. This paper presents the concept considering demand elasticity as an opportunity in retail market environment for inventing a new bid mechanism. This work formulates demand elasticity model as a Markov decision problem and implements pursuit algorithm as a machine learning technique to evaluate the price elasticity of demand by predicting the price. The performance of the algorithm is compared with the numerical calculation of price elasticity of demand for the given simulation settings.
Original languageEnglish
Title of host publicationIEEE PowerTech 2015 Conference: Towards Future Power Systems and Emerging Technologies, 29 June - 2 July 2015, Eindhoven, The Netherlands
Place of PublicationPiscataway
PublisherInstitute of Electrical and Electronics Engineers
Pages1-6
DOIs
Publication statusPublished - 2015
Event2015 IEEE Power Tech - Eindhoven, Netherlands
Duration: 29 Jun 20152 Jul 2015
http://powertech2015-eindhoven.tue.nl/

Conference

Conference2015 IEEE Power Tech
CountryNetherlands
CityEindhoven
Period29/06/152/07/15
Internet address

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