TY - JOUR
T1 - Optimal Consumption Policies for Power-Constrained Flexible Loads Under Dynamic Pricing
AU - Materassi, Donatello
AU - Bolognani, Saverio
AU - Roozbehani, Mardavij
AU - Dahleh, Munther A.
N1 - Publisher Copyright:
© 2010-2012 IEEE.
PY - 2015/7/1
Y1 - 2015/7/1
N2 - This paper analyzes the response of an individual consumer with a flexible demand for electricity to exogenous and stochastic electricity prices. The contributions of this paper are twofold. First, we propose a comprehensive model for which the optimal policy can be explicitly computed. The proposed consumer model features a time varying bound on power consumption, the presence of a nondeferrable load profile, the presence of a load profile that can be deferred up to a deadline, and the possibility of curtailment. Second, we describe the algorithm that, via explicit backward iterations of the Bellman equation, returns the optimal response of such consumer in a very general energy market scenario featuring a correlated/nonstationary price process and multiple energy procurement sources.
AB - This paper analyzes the response of an individual consumer with a flexible demand for electricity to exogenous and stochastic electricity prices. The contributions of this paper are twofold. First, we propose a comprehensive model for which the optimal policy can be explicitly computed. The proposed consumer model features a time varying bound on power consumption, the presence of a nondeferrable load profile, the presence of a load profile that can be deferred up to a deadline, and the possibility of curtailment. Second, we describe the algorithm that, via explicit backward iterations of the Bellman equation, returns the optimal response of such consumer in a very general energy market scenario featuring a correlated/nonstationary price process and multiple energy procurement sources.
KW - Power demand
KW - Power generation economics
KW - Power load control
UR - http://www.scopus.com/inward/record.url?scp=84933053527&partnerID=8YFLogxK
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U2 - 10.1109/TSG.2015.2393053
DO - 10.1109/TSG.2015.2393053
M3 - Article
AN - SCOPUS:84933053527
SN - 1949-3053
VL - 6
SP - 1884
EP - 1892
JO - IEEE Transactions on Smart Grid
JF - IEEE Transactions on Smart Grid
IS - 4
M1 - 7060654
ER -