Abstract

The economic analysis of smart grid capabilities needs to incorporate physical boundaries as hard constraints which need to be facilitated by means of flexibility potentials and intelligent dispatching. Due to the distributed nature of demand, economic coordination also needs to be able to facilitate a multitude of individual agents. Questions concerning the modeling and coordination of an active demand side are addressed using tools and techniques from information systems and economics.

Abstract

This work seeks to determine the potentials of a Demand Aggregator into the Demand Response scheme. The authors describe and validate the optimization technique used by the Aggregator to enable demand flexibility in domestic microgrid premises. The microgrid is comprised of Distributed Generation and shiftable load devices. By applying a monetary incentive signal in the microgrid's Energy Management System, the Aggregator empowers a change in the load profile, which signifies the potential of this concept in future electricity market and grid applications.