Dynamic remuneration of electricity consumers flexibility

• Main Authors: Baptista, J. (Author), Pinto, T. (Author), Ribeiro, C. (Author), Vale, Z. (Author)
• Format: Article
• Language: English
• Published: Elsevier Ltd 2022
• Subjects: Artificial intelligence; Costs; Data mining; Decision support modelling; Decision support systems; Demand response; Demand response programs; Dynamic pricing; Electric power utilization; Electricity consumers; Energy prices; Energy productions; Iberian market; Load profiling; Service provider
• Online Access: View Fulltext in Publisher

 This paper proposes a decision support model to define electricity consumers’ remuneration structures when providing consumption flexibility, optimized for different load regimes. The proposed model addresses the remuneration of consumers when participating in demand response programs, benefiting or penalizing those who adjust their consumption when needed. The model defines dynamic remuneration values with different natures for the aggregator (e.g. flexibility aggregator or curtailment service provider) and for the consumer. The preferences and perspective of both are considered, by incorporating variables that represent the energy price, the energy production and the flexibility of consumers. The validation is performed using real data from the Iberian market, and results enable to conclude that the proposed model adapts the remuneration values in a way that it is increased according to the consumers’ elastic, while being reduced when the generation is higher. Consequently, the model boosts the active consumer participation when flexibility is required, while reaching a solution that represents an acceptable g tradeoff between the aggregators and the consumers. © 2022 The Authors