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Published in:
2019 | OriginalPaper | Chapter
The Interaction of Consumers and Load Serving Entity to Manage Electricity Consumption
Authors : Natalia Aizenberg, Nikolai Voropai
Published in: Mathematical Optimization Theory and Operations Research
Publisher: Springer International Publishing
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Abstract
This paper addresses the coordination of interaction between various types of consumers and a load serving entity to manage electricity consumption by using several models: the Nash equilibrium pricing, and the adverse selection model based on the contract theory. We propose a method to form rate options for load curve optimization for different types of consumers and a load serving entity for different market configurations. The utility functions describe the real situation sufficiently well and allow the implementation of a system of incentives for load curve optimization (load shifting from a peak time of the day). The rates providing a separating equilibrium are determined. We compare the effectiveness of different retail market models. We use the pricing scheme that implies the change in electricity prices depending on the electricity consumption by all users during every hour so that all users are financially motivated.