Abstract:
This presentation describes stochastic optimization and simulation modeling for demand response (DR) in residential power markets.for the Texas power market (ERCOT), but which could also be applied to other regions. The models simulate a direct load-control technique where customers' power consumptionis adjusted during certain time periods called DR events. During a DR event, customers' loads are adjusted by smart thermostats. Both the simulation and the stochastic optimization modelsmade use of uncertain elements (e.g., load, prices) to determine best DR scheduling taking in to account risk as well as expected savings by retail power providers (REPs)