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Smart consumer load balancing: state of the art and an empirical evaluation in the Spanish electricity market

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Abstract

The basis of an efficient functioning of a power grid is an accurate balancing of the electricity demand of all the consumers at any instant with supply. Nowadays, this task involves only the grid operator and retail electricity providers. One of the facets of the Smart Grid vision is that consumers may have a more active role in the problem of balancing demand with supply. With the deployment of intelligent information and communication technologies in domestic environments, homes are becoming smarter and able to play a more active role in the management of energy. We use the term Smart Consumer Load Balancing to refer to algorithms that are run by energy management systems of homes in order to optimise the electricity consumption, to minimise costs and/or meet supply constraints. In this work, we analyse different approaches to Smart Consumer Load Balancing based on (distributed) artificial intelligence. We also put forward a new model of Smart Consumer Load Balancing, where consumers actively participate in the balancing of demand with supply by forming groups that agree on a joint demand profile to be contracted in the market with the mediation of an aggregator. We specify the business model as well as the optimisation model for load balancing, showing the economic benefits for the consumers in a realistic scenario based on the Spanish electricity market.

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Notes

  1. As an example, the market clearing price is set in this way in the Spanish (http://www.omel.es) and British (http://www.nationalgrid.com) electricity markets.

  2. Less formally, Constraint 4 ensures that if two slots are equal to \(W^{S_A}\), then there is no slot in between that is equal to 0.

  3. Charging consumers for energy consumption and power capacity is common in many countries, such as Spain and UK, although in some other countries (e.g., Germany) consumers are charged exclusively for their energy consumption.

  4. http://www.omie.es.

  5. In reality, this may not be the case. For example, usually the presence of a dryer is conditioned to the presence of the washing machine.

  6. For more details we refer the reader to Vasirani and Ossowski (2012).

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Acknowledgments

Work partially supported by the Spanish Ministry of Science and Innovation through the projects “OVAMAH” (grant TIN2009-13839-C03-02; co-funded by Plan E) and “AT” (grant CSD2007-0022; CONSOLIDER-INGENIO 2010) and by the Spanish Ministry of Economy and Competitiveness through the project “iHAS” (grant TIN2012-36586-C03-02).

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Correspondence to Matteo Vasirani.

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Vasirani, M., Ossowski, S. Smart consumer load balancing: state of the art and an empirical evaluation in the Spanish electricity market. Artif Intell Rev 39, 81–95 (2013). https://doi.org/10.1007/s10462-012-9391-6

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