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Article

Incentivizing intelligent customer behavior in smart-grids: a risk-sharing tariff & optimal strategies

Authors:

Georgios Methenitis,

Michael Kaisers,

Han La PoutréAuthors Info & Claims

IJCAI'16: Proceedings of the Twenty-Fifth International Joint Conference on Artificial Intelligence

Pages 380 - 386

Published: 09 July 2016 Publication History

Abstract

Current electricity tariffs for retail rarely provide incentives for intelligent demand response of flexible customers. Such customers could otherwise contribute to balancing supply and demand in future smart grids. This paper proposes an innovative risk-sharing tariff to incentivize intelligent customer behavior. A two-step parameterized payment scheme is proposed, consisting of a prepayment based on the expected consumption, and a supplementary payment for any observed deviation from the anticipated consumption. Within a game-theoretical analysis, we capture the strategic conflict of interest between a retailer and a customer in a two-player game, and we present optimal, i.e., best response, strategies for both players in this game. We show analytically that the proposed tariff provides customers of varying flexibility with variable incentives to assume and alleviate a fraction of the balancing risk, contributing in this way to the uncertainty reduction in the envisioned smart-grid.

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Cited By

Methenitis GKaisers MLa Poutré HElkind EVeloso MAgmon NTaylor M(2019)Forecast-Based Mechanisms for Demand ResponseProceedings of the 18th International Conference on Autonomous Agents and MultiAgent Systems10.5555/3306127.3331879(1600-1608)Online publication date: 8-May-2019
https://dl.acm.org/doi/10.5555/3306127.3331879
Li CLiu CYu XDeng KHuang TLiu L(2018)Integrating demand response and renewable energy in wholesale marketProceedings of the 27th International Joint Conference on Artificial Intelligence10.5555/3304415.3304470(382-388)Online publication date: 13-Jul-2018
https://dl.acm.org/doi/10.5555/3304415.3304470
Methenitis GKaisers MLa Poutré HLarson KWinikoff MDas SDurfee E(2017)SLA-Mechanisms for Electricity Trading under Volatile Supply and Varying Criticality of DemandProceedings of the 16th Conference on Autonomous Agents and MultiAgent Systems10.5555/3091125.3091389(1640-1642)Online publication date: 8-May-2017
https://dl.acm.org/doi/10.5555/3091125.3091389

Incentivizing intelligent customer behavior in smart-grids: a risk-sharing tariff & optimal strategies
1. Applied computing
  1. Enterprise computing
  2. Law, social and behavioral sciences

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Information & Contributors

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Published In

cover image Guide Proceedings

IJCAI'16: Proceedings of the Twenty-Fifth International Joint Conference on Artificial Intelligence

July 2016

4277 pages

ISBN:9781577357704

Editor:
Gerhard Brewka
Leipzig University, Germany

Sponsors

Sony: Sony Corporation
Arizona State University: Arizona State University
Microsoft: Microsoft
Facebook: Facebook
AI Journal: AI Journal

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AAAI Press

Publication History

Published: 09 July 2016

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Cited By

Methenitis GKaisers MLa Poutré HElkind EVeloso MAgmon NTaylor M(2019)Forecast-Based Mechanisms for Demand ResponseProceedings of the 18th International Conference on Autonomous Agents and MultiAgent Systems10.5555/3306127.3331879(1600-1608)Online publication date: 8-May-2019
https://dl.acm.org/doi/10.5555/3306127.3331879
Li CLiu CYu XDeng KHuang TLiu L(2018)Integrating demand response and renewable energy in wholesale marketProceedings of the 27th International Joint Conference on Artificial Intelligence10.5555/3304415.3304470(382-388)Online publication date: 13-Jul-2018
https://dl.acm.org/doi/10.5555/3304415.3304470
Methenitis GKaisers MLa Poutré HLarson KWinikoff MDas SDurfee E(2017)SLA-Mechanisms for Electricity Trading under Volatile Supply and Varying Criticality of DemandProceedings of the 16th Conference on Autonomous Agents and MultiAgent Systems10.5555/3091125.3091389(1640-1642)Online publication date: 8-May-2017
https://dl.acm.org/doi/10.5555/3091125.3091389

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