Methodology for managing cost-effective demand response campaigns based on demand elasticity profiles

We develop and evaluate a methodology for running manual implicit and explicit Demand Response campaigns in order to improve the sustainability of smart grids. Initially, we introduce a flexibility profiling engine that relies on the correlation among end-user’s consumption, prices and environmental conditions. Then, we investigate two mechanisms so that an Aggregator, acting as an intermediate between the Distribution System Operator or Retailer and the consumers, achieves the desired demand flexibility. More precisely we introduce: (i) a price-based mechanism that determines the new price that consumers will be paying during the DR campaign, and (ii) a reward-based mechanism that determines which set of consumers should participate in the campaign, along with the load flexibility to be asked from each one and the reward offered. The proposed methodology is evaluated using a publicly-available dataset. It is shown that CES model achieves high accuracy and that the details obtained using the proposed mechanisms are more favorable than the equivalent used