Abstract: It is widely agreed that an increased participation of the demand side in the electricity markets would produce benefits not only for the individual consumers but also for the market as a whole. This paper proposes a method for quantifying rigorously the effect that such an increase would have on the various categories of market participants. A new centralized complex-bid market-clearing mechanism has been devised to take into consideration the load shifting behavior of consumers who do submit price-sensitive bids. The effects of the proportion of demand response on the market are illustrated using a test system with ten generating units scheduled over 24 periods.

Abstract: There are 3 appendices listed: (A) DR strategies for HVAC systems; (B) Summary of DR strategies; and (C) Case study of advanced demand response.

Abstract: The present invention discloses a system for transferring electrical power between a grid and at least one vehicle. The vehicle can be Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV) or Fuel Cell Vehicle (FCV). The type of vehicle will be recognized and controlled by the system to support demand response and supply side energy management. Vehicle recognition can be carried out by load signature analysis, power factor measurement or RFID techniques. In an embodiment of the invention, the grid is a Smart Grid. The present invention also discloses a method for facilitating electrical power transfer between the grid and the vehicle.

Abstract: There are 3 appendices listed: (A) DR strategies for HVAC systems; (B) Summary of DR strategies; and (C) Case study of advanced demand response.

Abstract: An energy usage coordinator controls the energy usage of individual buildings of a group (or portfolio) of buildings in one or more load zones. These buildings have all contracted with an energy company which controls (directly or indirectly) the energy usage coordinator. By agreeing to lower energy usage during times of peak usage (when the energy company may otherwise have to pay very high prices on the spot or short term market), the owners or managers of the buildings receive a preferential energy rate from the energy company. Such a preferential rate may be in the form of a fixed rate reduction or a variable rate reduction. Alternatively, the energy company may determine that the energy is currently selling for twice what its building portfolio has contracted to pay for it so it requests some portion of the portfolio to reduce usage so that it can sell the excess/saved energy in the market.

Abstract: E-commerce platforms afford retailers unprecedented visibility into customer purchase behavior and provide an environment in which prices can be updated quickly and cheaply in response to changing market conditions. This study investigates dynamic pricing strategies for maximizing revenue in an Internet retail channel by actively learning customers' demand response to price. A general methodology is proposed for dynamically pricing information goods, as well as other nonperishable products for which inventory levels are not an essential consideration in pricing. A Bayesian model of demand uncertainty involving the Dirichlet distribution or a mixture of such distributions as a prior captures a wide range of beliefs about customer demand. We provide both analytic formulas and efficient approximation methods for updating these prior distributions after sales data have been observed. We then investigate several strategies for sequential pricing based on index functions that consider both the potential revenue and the information value of selecting prices. These strategies require a manageable amount of computation, are robust to many types of prior misspecification, and yield high revenues compared to static pricing and passive learning approaches. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2007

Abstract: Synopsis: The electric industry in the United States has experienced significant changes over the past several decades, the primary one being a shift from a system dominated by vertically-integrated utilities operating under cost-of-service regulation to one with increasing expansion of independent power producers and the potential for enhanced consumer benefits from more competitive wholesale markets. During much of that transition to date, however, the Federal Energy Regulatory Commission has focused far more on the supply side of the wholesale electric market equation man on the demand side of that equation. This article contends that the Commission has a strong legal basis for assuming jurisdiction over facilitating demand response in wholesale electric markets, and that such action on the demand side of the equation is warranted by the benefits associated with robust load participation in those markets. This article also recognizes that the states have traditionally regulated demand response and that they will continue to play an important role in cultivating its full benefits for electricity consumers. Therefore, this article further contends that enhancing coordination of federal and state initiatives offers the most promising approach to managing the jurisdictional overlap in this area. I. Introduction The electric industry in the United States has experienced significant changes over the past several decades, the primary one being a shift from a system dominated by vertically-integrated utilities operating under cost-ofservice regulation to one with increasing expansion of independent power producers and the potential for robust wholesale markets and enhanced competition. An important principle underlying this industry restructuring is that greater reliance on more competitive markets will bring greater benefits to the country's electricity consumers. Markets, in turn, rely on two sides of an equation: at a basic level, market prices result from the interaction of supply and demand. During much of the electric industry's transition to date, however, the Federal Energy Regulatory Commission (Commission) has primarily focused on the supply side of that equation, seeking to increase consumer benefits by providing open access to transmission services and reducing transmission congestion such that more generation is able to participate in the market, as well as promoting economic dispatch of generation over wider operational footprints. That focus has meant that the Commission has only recently looked to aggressively pursue robust market participation by loads, or the demand side in the wholesale electric market equation. Consequently, as noted regulatory analyst Eric Hirst observed in 2001, "Competitive wholesale markets . . . resemble the sound of one hand clapping. They are often inefficient and not fully competitive, in part because retail-customer loads do not participate in these markets."3 Despite recent efforts by the Commission to incorporate demand response into wholesale electric markets, those markets remain underdeveloped, and the country's electricity consumers do not receive the full benefits of a robust marketplace. This article contends that, as a response to the current state of wholesale electric markets, the Commission must continue to play an active role in the development of robust load participation in those markets. section II of this article describes benefits that research suggests are likely to stem from increased use of demand response, or the modification of consumer demand in the short term that can be defined more specifically as follows: "Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized."4 Modification of consumer demand in a longer timeframe includes changes such as the installation of more energy efficient appliances and technologies. …

Abstract: =Demand response (DR) is increasingly recognized asan essential ingredient to well-functioning electricity markets. DRmarket potential studies can answer questions about the amount of DRavailable in a given area, from which market segments. Several recent DRmarket potential studies have been conducted, most adapting techniquesused to estimate energy-efficiency (EE) potential. In this scoping study,we: reviewed and categorized seven recent DR market potential studies;recommended a methodology for estimating DR market potential for large,non-residential utility customers that uses price elasticities to accountfor behavior and prices; compiled participation rates and elasticityvalues from six DR options offered to large customers in recent years,and demonstrated our recommended methodology with large customer marketpotential scenarios at an illustrative Northeastern utility. We recommendan elasticity approach for large-customer DR options that rely oncusto!

Abstract: The purpose of this paper is to examine the economic and technical perspectives of critical peak pricing plan as an active demand response(DR) program. To implement a good DR program, there are three perspectives to be considered: regulatory, economic, and technical perspectives. This paper will assume that the regulatory perspective of DR is determined as critical peak pricing(CPP) plan and examine the other two. The economic perspective of CPP plan is the incentive of the plan conductor, or the profit of an energy service provider(ESP). The technical perspective is a method to maximize the incentive of CPP plan, or an ESP's profit. An ESP should decide when to call critical peaks within certain constraints to maximize her profit. This is done by predicting the market prices and following a similar method as evaluating a swing option. The numerical example will show the optimal critical peak decisions.

Abstract: Demand side load shift has re-emerged as an important tool to solve the problems accompanying the restructuring of power systems, such as capacity shortage, transmission congestion, electricity price volatility and possible reduced system reliability. A methodology to determine demand side load shift is developed to enhance reliability and to reduce nodal price volatility of restructured power systems. In restructured power systems, the conventional "same for all customers" electricity price is replaced by nodal prices. Electricity prices will interact mutually with demands. This interaction is known as demand response. Demand response is modeled using demand-price elasticity matrix which includes self- and cross-elasticities. The demand side load shifts under N-2 random system contingencies are determined using demand-price elasticity. Then the overall stochastic demand side load shift is calculated using the determined demand side load shifts under random contingencies and their probability. Reliability enhancement and nodal price reduction of restructured power systems due to stochastic demand side load shift are investigated using optimal power flow (OPF) and reliability evaluation techniques. A small but comprehensive reliability test system, RBTS, is used to illustrate the concepts, and simulation results show that stochastic demand side load shift is an efficient tool to reduce nodal price volatility and enhance system and nodal reliability of restructured power systems.

Abstract: This paper describes the concept for and lessons from the development and field-testing of an open, interoperable communications infrastructure to support automating demand response (DR). Automating DR allows greater levels of participation and improved reliability and repeatability of the demand response and customer facilities. Automated DR systems have been deployed for critical peak pricing and demand bidding and are being designed for real time pricing. The system is designed to generate, manage, and track DR signals between utilities and Independent System Operators (ISOs) to aggregators and end-use customers and their control systems.

Abstract: Demand response is increasingly recognized as an essentialingredient to well functioning electricity markets. This growingconsensus was formalized in the Energy Policy Act of 2005 (EPACT), whichestablished demand response as an official policy of the U.S. government,and directed states (and their electric utilities) to considerimplementing demand response, with a particular focus on "price-based"mechanisms. The resulting deliberations, along with a variety of stateand regional demand response initiatives, are raising important policyquestions: for example, How much demand response is enough? How much isavailable? From what sources? At what cost? The purpose of this scopingstudy is to examine analytical techniques and data sources to supportdemand response market assessments that can, in turn, answer the secondand third of these questions. We focus on demand response for large(>350 kW), commercial and industrial (C&I) customers, althoughmany of the concepts could equally be applied to similar programs andtariffs for small commercial and residential customers.

Abstract: This paper presents the technical and architectural issues associated with automating Demand Response (DR) programs. The paper focuses on a description of the Demand Response Automation Server (DRAS), which is the main component used to automate the interactions between the Utilities and their customers for DR programs. Use cases are presented that show the role of the DRAS in automating various aspects of DR programs. This paper also describes the various technical aspects of the DRAS including its interfaces and major modes of operation. This includes how the DRAS supports automating such Utility/Customer interactions as automated DR bidding, automated DR event handling, and finally real-time pricing.

Abstract: The research described in this thesis, focuses on some activities on the demand side that could reduce peak load in electricity system by using consumer flexibility i.e. by increasing the demand side response to signals coming from the energy market. The major objective is to test and analyse different strategies to reduce peak load at the demand side considering their techno-economic, environmental and behavioural aspects. Both quantitative and qualitative research methods were used, including the detailed energy use data evaluation, direct and indirect load control experiments and interviews with residential and commercial consumers and utilities. One general conclusion of this research process is that there's a lack of knowledge and information on load demand variation and its consequences both on the consumer side and the utility side. New automated interval metering technologies enable 'visibility' of electricity use, however this potentially valuable information is rarely analysed and used. Modern metering and communication systems enable utilities to perform direct load control measures and to automate demand response. As the experiments with direct load control at residential consumers show, these measures could be implemented without significant comfort losses for the consumers. However, the value of this kind of demand side actions needs to be clearly expressed or quantified both for consumers and the supplier. Indirect load control with the help of various types of pricing is possible, but needs to have more significant financial motivation for the consumers than the present offers give. The results of the analysed examples of a tariff with a load demand component indicate that consumers' electrical expenses have to be more considerably reduced if they are to significantly 'improve' the consumption patterns. Utilities, for example one of those analysed in our case studies, may not assess indirect load control as a reliable resource. Therefore the integration of direct and indirect load control measures could be an attractive solution for them. Load reduction strategies at the demand side could influence the environmental performance of an energy system by decreasing emissions and preventing the distortion of territories. Nevertheless, it should be emphasized that the environmental effects depend on the prevalent generation and transmission system and could be different on different levels - regional, national and local - as the analysis example of the Swedish case, described in this thesis, shows. Load management and demand response could be considered as a socially responsible behaviour rather than only a solution to techno-economic problems of an energy market. The results of this research showed interesting examples proving that certain residential and commercial consumers are willing to participate in demand response programs from a corporate social responsibility point of view.

Abstract: Several measures in the environment and energy realms are currently being implemented in the EU and its Member States. Three of these instruments, with an impact on the electricity market, are demand side management activities, promotion of electricity from renewable energy sources and measures aimed at the mitigation of Greenhouse Gas (GHG) emissions. The objective of this paper is to analyse the impact of these energy efficiency and environmental goals and instruments on electricity demand and costs to electricity consumers when electricity markets are either national or international and when those policies are implemented by a national or an international institution. The paper shows that the effectiveness and impact of those measures largely depends on the demand response in the electricity market. An additional conclusion is that, when either the electricity markets or the support policies are national, distortions may occur, i.e. the reductions in electricity demand in one country may be subsidised by consumers or taxpayers in another country.

Abstract: Different driving forces push the electricity production towards decentralization. The projected increase of distributed power generation on the residential level with an increasing proportion of intermittent renewable energy resources poses problems for continuously matching the energy balance when coordination takes place centrally. On the other hand, new opportunities arise by intelligent clustering of generators and demand in so-called Virtual Power Plants. Part of the responsibility for new coordination mechanisms, then, has to be laid locally. To achieve this, the current electricity infrastructure is expected to evolve into a network of networks (including ICT(Information and Communication Technology)-networks), in which all system parts communicate with one another, are aware of each other's context and may influence each other. In this paper, a multi-agent systems approach, using price signal-vectors from an electronic market is presented as an appropriate technology needed for massive control and coordination tasks in these future electricity networks. The PowerMatcher, a market-based control concept for supply and demand matching (SDM) in electricity networks, is discussed. The results within a simulation study show the ability to raise the simultaneousness of electricity production and consumption within (local) control clusters with cogeneration and heat-pumps by exchanging price signals and coordinated allocation using market algorithms. The control concept, however, can also be applied in other business cases like reduction of imbalance cost in commercial portfolios or virtual power plant operators, utilizing distributed generators. Furthermore, a PowerMatcher-based field test configuration with 15 Stirling-engine powered microCHP's is described, which is currently in operation within a fieldtest in the Netherlands.

Abstract: Electricity is the lifeblood of modern technological societies. It provides or underpins many services and processes for which it is non-substitutable by other energy forms. New Zealand is richly endowed with existing and potential renewable energy resources which deliver their benefits via electricity as a vector. However managing real time electricity supply to meet demand will become more challenging as more intermittent renewables are incorporated into the electricity supply system, and as consumer lifestyles evolve; hence demand response from all consumers will become more valuable in both economic and carbon emissions terms. This note discusses the possibility of small electricity consumers participating in electrical demand response* in New Zealand and provides input to the consultation arising from the publication of the New Zealand strategy document “Powering Our Future”.

Abstract: This paper explores the feasibility of integrating energyefficiency program evaluation with the emerging need for the evaluationof programs from different "energy cultures" (demand response, renewableenergy, and climate change). The paper reviews key features andinformation needs of the energy cultures and critically reviews theopportunities and challenges associated with integrating these withenergy efficiency program evaluation. There is a need to integrate thedifferent policy arenas where energy efficiency, demand response, andclimate change programs are developed, and there are positive signs thatthis integration is starting to occur.

Abstract: To meet the rising electric power demand, and accommodating the new demand and supply-side options of the 21st century, significant improvements in the bulk power transmission system are necessary. Transmission constraints and grid congestion can raise costs by limiting access to lower-cost, more diverse power supplies during both normal conditions and system emergencies. The engineering, design, licensing, and construction of a major high-voltage transmission project require at least 7 years and can extend beyond 10 years. Investigations determining the performance of the bulk power system beyond 5 years are heavily influenced by the addition and location of new generation, dispatch patterns, load growth, and loop flows from other systems. These uncertainties and risks hamper the ability to conduct transmission planning, while forcing electric utilities and regulatory authorities to make unpopular licensing and routing decisions based on imperfect information. Tremendous foresight and regulatory fortitude are required to propose large regional and inter-regional transmission projects that have anything but a clear reliability need. Expansion of the high-voltage transmission system to support adequacy goals can be also influenced by market, and/or economic conditions. These expansions require careful study to balance supply-side, bulk transmission and demand-side options on the same basis so comparative analysis can support critical decisions.

Abstract: This paper presents the operations planning activities of a disco operating in a competitive electricity market environment. The disco responds to real-time changes in electricity market prices to optimally manage and supply the hourly customer demand based on an appropriate economic criterion while incorporating technical constraints. An operation planning model is presented in the paper, which aims to minimize the total disco operational costs taking into account the price fluctuations. The model uses an optimum power flow from the disco perspective to find the optimum operational decisions where different resources become available. A novel feature of this work is the adoption of a price elasticity to demand function of the disco based on historical data trend to examine how its operational decisions are affected in the context of electricity market dynamics. Case study with a simple distribution system is presented and different operational scenarios are demonstrated.