Abstract
Current electricity tariffs for retail rarely provideincentives for intelligent demand response of flexiblecustomers. Such customers could otherwisecontribute to balancing supply and demand in futuresmart grids. This paper proposes an innovativerisk-sharing tariff to incentivize intelligentcustomer behavior. A two-step parameterized paymentscheme is proposed, consisting of a prepaymentbased on the expected consumption, and asupplementary payment for any observed deviationfrom the anticipated consumption. Within a gametheoreticalanalysis, we capture the strategic con-flict of interest between a retailer and a customerin a two-player game, and we present optimal, i.e.,best response, strategies for both players in thisgame. We show analytically that the proposed tariffprovides customers of varying flexibility with variableincentives to assume and alleviate a fraction ofthe balancing risk, contributing in this way to theuncertainty reduction in the envisioned smart-grid.
| Original language | English |
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| Title of host publication | Proceedings of the Twenty-Fifth International Joint Conference on Artificial Intelligence (IJCAI-16) |
| Editors | Subbarao Kambhampati |
| Place of Publication | Palo Alto |
| Publisher | American Association for Artificial Intelligence (AAAI) |
| Pages | 380-386 |
| Number of pages | 7 |
| ISBN (Electronic) | 978-1-57735-770-4 |
| Publication status | Published - 2016 |
| Event | IJCAI 2016: 25th International Joint Conference on Artificial Intelligence - New York, United States Duration: 9 Jul 2016 → 15 Jul 2016 http://ijcai.org/proceedings/2016 |
Conference
| Conference | IJCAI 2016 |
|---|---|
| Abbreviated title | IJCAI 2016 |
| Country/Territory | United States |
| City | New York |
| Period | 9/07/16 → 15/07/16 |
| Internet address |
