Analytical Framework for Market-oriented DSR Flexibility Integration and Management

Shi You, Junjie Hu, Kai Heussen, Chunyu Zhang

Department of Electrical Engineering, Technical University of Denmark, Lyngby, Denmark.

DOI: 10.4236/epe.2013.54B259                

Abstract

Integration and management of the flexibility of Demand Side Resources (DSR) in today’s energy systems plays a significant role in building up a sustainable society. However, the challenges of understanding, predicating and handling the uncertainties associated this subject to a great extent hamper its development. In this paper, an analytical framework based on a multi-portfolio setup in presence of a deregulated power market is proposed to address such challenges by adopting the thinking in modern portfolio theory (MPT). A Numerical example that targets on analyzing the risk and return for various flexibility pricing strategies are presented to illustrate some features of the framework.

Keywords

Analytical Framework; Distributed Energy Resources; Flexiblity; Deregulated Power Market; Morden Portfolio Theory; Risk and Return

Conflicts of Interest

The authors declare no conflicts of interest.

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