Document Type

Thesis - Open Access

Award Date


Degree Name

Master of Science (MS)


Electrical Engineering and Computer Science

First Advisor

Zhen Ni


Bidding strategy, Market analysis, Consumer comfort, Demand response, Hierarchical control framework, Incentive compensation, Residential energy management


The electricity demand is increasing with the growing use of electricity-based appliances in today’s world. The residential sector’s electricity consumption share is also increasing. Demand response (DR) is a typical way to schedule consumers’ energy consumption and help utility to reduce the peak load demand. Residential demand management can contribute to reduce peak electric demand, decrease electricity costs, and maintain grid reliability. Though the demand management has benefits to the utility and the consumers, controlling the consumers electricity consumption provides inconvenience to the consumers. The challenge here is to properly address the customers’ inconvenience to encourage them to participate and meanwhile satisfy the required demand reduction efficiently. In this work, new incentive-based demand management schemes for residential houses are designed and implemented. This work investigates two separate DR frameworks designed with different demand reduction coordination strategies. The first framework design constitutes a utility, several aggregators, and residential houses participating in DR program. Demand response potential (DRP), an indicator of whether an appliance can contribute to the DR, guides the strategic allocation of the demand limit to the aggregators. Each aggregator aggregates the DRP of all the controllable appliances under it and sends to the utility. The utility allocates different demand limits to the aggregators based on their respective DRP ratios. Participating residential customers are benefited with financial compensation with consideration of their inconvenience. Two scenarios are discussed in this approach with DRP. One where the thermostatically controlled loads (TCLs) are controlled. The thermal comfort of residents and rewards are used to evaluate the demand response performance. The other scenario includes the time-shiftable appliances control with the same framework. The second framework is a three-level hierarchical control framework for large-scale residential DR with a novel bidding scheme and market-level analysis. It comprises of several residential communities, local controllers (LCs), a central controller (CC), and the electricity market. A demand reduction bidding strategy is introduced for the coordination among several LCs under a CC in this framework. Incentives are provided to the participating residential consumers, while considering their preferences, using a continuous reward structure. A simulation study on the 6-bus Roy Billinton Test System with 1;200 residential consumers demonstrates the financial benefits to both the electric utility and consumers.


South Dakota State University


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