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Overview of Demand Response Read chapter Read first chapter

2019 | OriginalPaper | Chapter

6. Coupon Incentive-Based Demand Response

Authors : Pengwei Du, Ning Lu, Haiwang Zhong

Published in: Demand Response in Smart Grids

Publisher: Springer International Publishing

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Abstract

This chapter presents the formulation and critical assessment of a novel type of demand response (DR) program targeting retail customers (such as small/medium size commercial, industrial, and residential customers) who are equipped with smart meters yet still face a flat rate. Enabled by pervasive mobile communication capabilities and smart grid technologies, load serving entities (LSEs) could offer retail customers coupon incentives via near-real-time information networks to induce demand response for a future period of time in anticipation of intermittent generation ramping and/or price spikes. This scheme is referred to as coupon incentive-based demand response (CIDR). In contrast to the real-time pricing or peak load pricing DR programs, CIDR continues to offer a flat rate to retail customers and also provides them with voluntary incentives to induce demand response. Theoretical analysis shows the benefits of the CIDR scheme in terms of social welfare, consumer surplus, LSE profit, the robustness of the retail electricity rate, and readiness for implementation. The pros and cons are discussed in comparison with existing DR programs. Numerical illustration is performed based on realistic supply and demand data obtained from the Electric Reliability Council of Texas (ERCOT).

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previous chapter Integrated Demand Response in the Multi-Energy System
next chapter Distributed Real-Time Demand Response
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Metadata
Title
Coupon Incentive-Based Demand Response
Authors
Pengwei Du
Ning Lu
Haiwang Zhong
Copyright Year
2019
Book
Demand Response in Smart Grids

Print ISBN: 978-3-030-19768-1

Electronic ISBN: 978-3-030-19769-8

Copyright Year: 2019

DOI
https://doi.org/10.1007/978-3-030-19769-8_6