International Journal of Economics and Statistics

ISSN: 2309-0685
Volume 6, 2018

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of NAUN Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.

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Volume 6, 2018

Title of the Paper: Incentive-Based Demand Response: A Rebate-Based Design


Authors: Nhat-Vinh Vo, Klaus Frank, Josef Haunschmiedy, Raimund Kovacevicz, Georg Panholzer

Pages: 1-9

Abstract: In future power grids, the high penetration with Renewable Energy Resources (RES) will be a big challenge. The problem is not the high RES contribution per se, but even desirable in order to make a decisive contribution to climate protection through CO2-neutral power generation. The problem lies in particular in the fact that power stations based on fossil fuels in current electricity networks are stabilizing factors and sources of operational flexibility. In future electricity grids, new sources of flexibility must be tapped - not only at the generation but also on the side of demand, e.g. through Demand Side Management (DSM). Various approaches are divided into direct and indirect control methods. In this paper, we present a model class of Incentive-based Demand Response (IbDR), where the power consumption of household coalitions is indirectly controlled by rebates on electricity bills. We apply the theory of (convex) cooperative games to design IbDR events that promote cooperative behavior of households. In particular, the methods are designed so that the use of storage (batteries) are very beneficially integrated. We have developed a simulation tool MASim that simulates electricity consumptions of households. Using MASim we carried out numerical experiments, which show the functionality of our proposed IbDR method. In field studies, we developed the ICT and tried out how batteries can be controlled within the scope of our proposed IbDR schemes.