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A Generalized Formulation of Demand Response under Market Environments

  • Minh Y Nguyen EMAIL logo and Duc M. Nguyen
Published/Copyright: February 17, 2015

Abstract

This paper presents a generalized formulation of Demand Response (DR) under deregulated electricity markets. The problem is scheduling and controls the consumption of electrical loads according to the market price to minimize the energy cost over a day. Taking into account the modeling of customers’ comfort (i.e., preference), the formulation can be applied to various types of loads including what was traditionally classified as critical loads (e.g., air conditioning, lights). The proposed DR scheme is based on Dynamic Programming (DP) framework and solved by DP backward algorithm in which the stochastic optimization is used to treat the uncertainty, if any occurred in the problem. The proposed formulation is examined with the DR problem of different loads, including Heat Ventilation and Air Conditioning (HVAC), Electric Vehicles (EVs) and a newly DR on the water supply systems of commercial buildings. The result of simulation shows significant saving can be achieved in comparison with their traditional (On/Off) scheme.

Appendix

A.1 Heat ventilation and air conditioning

The mathematical formulation of DR problem for HVAC is as follows.

(15)minqkhvack=0,1...N1ETkk=0,1...N1{k=0N1ρkqkhvac}

Subject to

(16)tk+1=tk+αqkhvac+βTktkortk+1=1βtk+αqkhvac+βTk,k=0,1...N1
(17)qminhvacqkhvacqmaxhvac,k=0,1...N1
(18)tmintktmax,k=1,2...N

where qkhvac is the energy consumption of HVAC during state k, [kWh]; tk is the indoor temperature at the beginning of stage k, [°C]; Tk is the ambient temperature during stage k, [°C]; α is the equivalent thermal resistance of HVAC, [°C/kWh]; β is the coefficient represents the heat losses between the indoor and outdoor space, [p.u.]; qminhvac,qmaxhvac are the capacity limits of HVAC, [kWh]; and tmin, tmax are the lower and upper temperature of human comforts, [°C], e.g. human fells comfortable if the temperature is between 20 and 24°C at night time and 22 and 26°C at daytime.

The traditional operation scheme of HVAC is that it is on/off until the indoor temperature reaches the upper/lower bound of preference, respectively.

(19)qk+1hvac=qmaxhvaciftktmin8qkhvaciftmin<tk<tmax80iftktmax

A.2 Electric vehicles

The mathematical formulation of DR problem for EVs is as follows:

(20)minqkevk=0,1N1k=0N1ρkqkev

Subject to

(21)sock+1={sock+ηqkevsock1ηqkevifchargingifdischarging,k=0,1...N1
(22)qminevqkevqmaxev,k=0,1...N1
(23)socminsocksocmax,k=1,2...N
(24)socN=socmax

where qkev is the energy charging/discharging of the EV during stage k, [kWh]; sock is the battery SOC at the beginning of stage k, [kWh]; η is the charging/discharging efficiency, [p.u.]; qminev,qmaxev are the charging/discharging rate limits, [kW]; and socmin, socmax are the capability limits of the tank, [kWh]. It is noted that the number of stage, N, just covers a portion of day when the EV is plugged in, 06:00 pm–08:00 am in this paper. The customers’ preference is that the EV is full of charge at the end of charging duration (eq. (24)).

The traditional charging scheme of EVs is that the battery is charged with a fixed rate until full.

(25)qkev={qratedevif sock<socmax0otherwise

A.3 Water supply systems

The mathematical formulation of DR problem for water supply systems is as follows.

(26)minqkpsk=0,1...N1Edkk=0,1...N1k=0N1ρkqkps

Subject to

(27)vk+1=vk+ηqkpsHdk,k=0,1...N1
(28)qminpsqkpsqmaxps,k=0,1...N1
(29)vminvkvmax,k=1,2...N

where ρk is the electricity price in stage k, [$/kWh]; qkps is the energy consumption of pumping system during state k, [kWh]; vk is the water volume in the tank at the beginning of stage k, [m3]; dk is the water demand during stage k, [m3/h]; η is the efficiency of the pump, [p.u.]; H is the height pressure of the tank, [kPa]; qminps,qmaxps are the capacity limits of pumping system, [kW]; vmin, vmax are the capability limits of the tank, [m3]; ∆T is the time basis of the electricity market, [hour]. It is obvious that the users’ comfort is always preserved by the problem constraints (eqs (27)–(29)).

The traditional pumping scheme of water supply systems is that the pump is on/off until the water level reaches the upper/lower level of the tank, respectively.

(30)qk+1ps={qmaxpsifvkvminqkpsifvmin<vk<vmax0ifvkvmax
Table 2:

The parameters used in the simulation of the case study.

System parametersCustomer preference
HVACα (°C/kWh)0.05tmin (°C) at night20
β (p.u.)0.15tmax (°C) at night24
qminhvac (kWh)0tmin (°C) at day22
qmaxhvac (kWh)50tmax (°C) at day26
EVsη (p.u.)0.85The car needs to be full of charge at the end of the charging period.

socN = socmax
socmax (kWh)50
socmin (kWh)10
qminev (kWh)0
qmaxev (kWh)5
Water supply systemsη (p.u.)0.75The water of the tank needs to be maintained at adequate levels for usage, dk (m3).
vmax (m3)150
vmin (m3)10
qminps (kWh)0
qmaxps (kWh)12.5

Nomenclature

x(t)

the state of the system, i.e., state variable, at time t

u(t)

the control of the system, i.e., control variable, at time t

w(t)

the uncertainty of the system. i.e., random variable, at time t

umin,umax

the input capacity limits

xmin,xmax

the physical limits of the system

T

the terminal time

N

the number of stages

xk

the state variable at the beginning of stage k

uk

the control variable during stage k

wk

the uncertainty incurred during stage k

f(∙)

the state transition function

g(∙)

the cost function

h(∙)

the customers’ preference function

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Published Online: 2015-2-17
Published in Print: 2015-6-1

©2015 by De Gruyter

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