A nonlinear control method for price-based demand response program in smart grid
Introduction
Smart grid is an intelligent power system that integrates advanced control, communications, and sensing technologies into the power grid [1]. In smart grid, demand response can motivate customers to shift their loads from on-peak to off-peak periods [2]. It is widely accepted that demand response is a more cost-effective way than providing enough generation capabilities to meet the peak load [3], [4], [5], [6], [7]. In general, there are two categories of demand response programs: incentive-based programs and price-based programs. The incentive-based programs include the direct load control program, the emergency demand response program, and the ancillary services market. For the price-based programs, the utilities can change the power consumption of customers by pricing, such as time of use (TOU), critical peak pricing (CPP), extreme day CPP (ED-CPP), extreme day pricing (EDP), and real-time pricing (RTP) [8]. Smart grid increases the opportunities for demand response by providing real-time data to providers and customers. In smart grid, the price can be provided to the customers in real time. For example, the electricity provider announces electricity prices on a rolling basis in the RTP program, and the price for a given time period (e.g., an hour) is determined and published before the start of the period (e.g., 15 min beforehand).
There exist a number of literature on the price-based demand response programs. Different demand response programs were developed based on game theory [9], [10], [11], stochastic optimization [12], [13], intelligent optimization [14], and dual decomposition method [15], [16]. The social welfare maximization was achieved by optimizing the individual utilities of the customers in the demand response program based on dual decomposition. Then, a distributed power control algorithm was proposed for demand response with communication loss [17]. The works mentioned above assumed that the price is adjusted according to a pricing algorithm instead of an explicit pricing function. Recently, a linear pricing function was developed to achieve the balance between supply and demand for smart grid [18], [19], and a nonlinear pricing function was used to design a distributed demand response algorithm [20]. Nevertheless, few works are devoted to the social optimality of the distributed power control under nonlinear pricing function and the influence of the disturbances on the power control algorithm.
In this study, we use a quadratic pricing function and establish the conditions on the social optimality of the distributed power control algorithm. Due to the unavoidable disturbances on power systems, we further consider the distributed power control with additive disturbances on the power measurements and the price. The differences between our work and the other smart grid algorithms are shown in Table 1. To the best of our knowledge, the social optimality of the distributed power control under the nonlinear pricing function and the influence of the disturbances on the power control algorithm have not been studied. The main contributions are as follows.
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The price-based demand response program is formulated as a nonlinear power management system.
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The condition is established for the equivalence of the equilibrium point of the system and the optimal solution of a social welfare maximization problem.
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The proof of the stability is given for the power management system with and without disturbances on the power measurements and the price.
The rest of the paper is organized as follows. In Section 2, the demand response program is formulated as a nonlinear power management system. In Section 3, the conditions of the price parameters are established for both the global asymptotic stability of the system and the social welfare optimality of the equilibrium point. In Section 4, the input-to-state (ISS) stability is shown for the system with disturbances on the power measurements and the price. The discrete-time implementation of the power management system is proposed in Section 5, and the simulation results are given in Section 6. Finally, conclusions are summarized in Section 7.
Section snippets
System model
As shown in Fig. 1, we consider a smart power system consisting of one electricity provider and N customers. The operation cycle of the power system is divided into several time slots. In each time slot, the electricity provider decides the electricity price and announces it to the customers. Then, the customers manage their power consumption according to the announced price.
Stability and optimality
In this section, we will study the stability of the power management system (2), (3). Before the proof, the definition of global asymptotic stability is given. Definition 1 Let be an equilibrium point for with . The equilibrium point of is said to be globally asymptotically stable if for all initial conditions . Theorem 1 The power management system (2), (3) are globally asymptotically stable if Proof Let , where and .Stability [24]
Power management system with additive disturbances
In reality, the power measurements and the price are not accurate due to the errors in the two-way communications between the electricity provider and the customers. It is necessary to study the impact of disturbances on the power management system. As shown in Fig. 4, and denote the additive disturbances on the price and the total power consumption, respectively. Then, the power control algorithm with disturbances is denoted asand the electricity price with
Discrete-time implementation
From the viewpoint of implementation, the discrete-time counterparts of the power control algorithm are considered. The discrete-time control algorithm without disturbances is given asand the discrete-time control algorithm with disturbances is denoted as
In practice, the electricity provider sets the electricity price according to the forecast demand and announces
Numerical results
In the simulations, we consider a residential power system composed of ten customers and one electricity provider. The power supply Q is varying from 10 kW to 42 kW. The parameters a and b are set to 3.3 and 0.01, respectively. The step size is 0.07. The willingness parameter is randomly selected from [20], [25]. The electricity prices in different time slots are shown in Fig. 7 for the power management system with and without disturbances. We observe that the disturbances cause errors to
Conclusion
This paper uses a nonlinear control method to generate a price-based demand response program. The demand response program is formulated as a nonlinear power management system, and the stability is shown for the system with and without disturbances. It is shown that the power management system can match supply with demand when there are no disturbances, and the disturbances will result in the errors in electricity price and the matching errors between supply and demand. This further degrades the
Acknowledgement
This work was supported in part by National Natural Science Foundation of China under Grants 61503324, 61573303, 61473202, 61172095 and 61203104 and in part by Project Funded by China Postdoctoral Science Foundation under Grant 2015M570233.
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