TITLE:
Analytical Framework for Market-oriented DSR Flexibility Integration and Management
AUTHORS:
Shi You, Junjie Hu, Kai Heussen, Chunyu Zhang
KEYWORDS:
Analytical Framework; Distributed Energy Resources; Flexiblity; Deregulated Power Market; Morden Portfolio Theory; Risk and Return
JOURNAL NAME:
Energy and Power Engineering,
Vol.5 No.4B,
November
20,
2013
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.