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Indirect Load Control for Energy Storage Systems Using Incentive Pricing under Time-of-Use Tariff

doi: 10.3390/en9070558
Indirect load control (ILC) is a method by which the customer determines load reduction of electricity by using a price signal. One of the ILCs is a time-of-use (TOU) tariff, which is the most commonly used time-varying retail pricing. Under the TOU tariff, the customer can reduce the energy cost through an energy storage system (ESS). However, because this tariff is fixed for several months, the ESS operation does not truly reflect the wholesale market price, which could widely fluctuate. To overcome this limitation, this paper proposes an incentive pricing method in which the load-serving entity (LSE) gives the incentive pricing signal to the customers with ESSs. Because the ESS charging schedule is determined by the customer through ILC, a bilevel optimization problem that includes the customer optimization problem is utilized to determine the incentive pricing signal. Further, the bilevel optimization problem is reformulated into a one-level problem to be solved by an interior point method. In the proposed incentive scheme: (1) the social welfare increases and (2) the increased social welfare can be equitably divided between the LSE and the customer; and (3) the proposed incentive scheme leads the customer to voluntarily follow the pricing signal.
- Seoul National University Korea (Republic of)
- Seoul National University Korea (Republic of)
- Electric Power Research Institute United States
- Electric Power Research Institute United States
bilevel programming; demand-side management; energy storage system (ESS); indirect load control (ILC), Technology, T, bilevel programming, demand-side management, energy storage system (ESS), indirect load control (ILC)
bilevel programming; demand-side management; energy storage system (ESS); indirect load control (ILC), Technology, T, bilevel programming, demand-side management, energy storage system (ESS), indirect load control (ILC)
citations This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).11 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Top 10% influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Average impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Top 10%
