Risk-based allocation of demand response resources using conditional value-at risk (CVaR) assessment

Ji Hui Kim, Jaehee Lee, Sung-Kwan Joo

Research output: Contribution to journalArticle

Abstract

In a demand response (DR) market run by independent system operators (ISOs), load aggregators are important market participants who aggregate small retail customers through various DR programs. A load aggregator can minimize the allocation cost by efficiently allocating its demand response resources (DRRs) considering retail customers' characteristics. However, the uncertain response behaviors of retail customers can influence the allocation strategy of its DRRs, increasing the economic risk of DRR allocation. This paper presents a risk-based DRR allocation method for the load aggregator that takes into account not only the physical characteristics of retail customers but also the risk due to the associated response uncertainties. In the paper, a conditional value-at-risk (CVaR) is applied to deal with the risk due to response uncertainties. Numerical results are presented to illustrate the effectiveness of the proposed method.

Original languageEnglish
Pages (from-to)789-795
Number of pages7
JournalJournal of Electrical Engineering and Technology
Volume9
Issue number3
DOIs
Publication statusPublished - 2014 Jan 1

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Risk assessment
Resource allocation
Economics
Costs
Uncertainty

Keywords

  • Conditional value-at-risk (CVaR)
  • Demand response (DR)
  • Demand response resource (DRR)
  • Load aggregator

ASJC Scopus subject areas

  • Electrical and Electronic Engineering

Cite this

Risk-based allocation of demand response resources using conditional value-at risk (CVaR) assessment. / Kim, Ji Hui; Lee, Jaehee; Joo, Sung-Kwan.

In: Journal of Electrical Engineering and Technology, Vol. 9, No. 3, 01.01.2014, p. 789-795.

Research output: Contribution to journalArticle

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