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Multiple Dynamic Pricing for Demand Response with Adaptive Clustering-based Customer Segmentation in Smart Grids

Meng, Fanlin and Ma, Qian and Liu, Zixu and Zeng, Xiao-Jun (2021) Multiple Dynamic Pricing for Demand Response with Adaptive Clustering-based Customer Segmentation in Smart Grids. Working Paper. arXiv. (Submitted)

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Abstract

In this paper, we propose a realistic multiple dynamic pricing approach to demand response in the retail market. First, an adaptive clustering-based customer segmentation framework is proposed to categorize customers into different groups to enable the effective identification of usage patterns. Second, customized demand models with important market constraints which capture the price-demand relationship explicitly, are developed for each group of customers to improve the model accuracy and enable meaningful pricing. Third, the multiple pricing based demand response is formulated as a profit maximization problem subject to realistic market constraints. The overall aim of the proposed scalable and practical method aims to achieve 'right' prices for 'right' customers so as to benefit various stakeholders in the system such as grid operators, customers and retailers. The proposed multiple pricing framework is evaluated via simulations based on real-world datasets.

Item Type: Monograph (Working Paper)
Divisions: Faculty of Science and Health > Mathematical Sciences, Department of
Depositing User: Elements
Date Deposited: 08 Jul 2021 15:11
Last Modified: 08 Jul 2021 15:11
URI: http://repository.essex.ac.uk/id/eprint/30106

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