SYSTEM AND METHOD FOR LOWEST COST AGGREGATE ENERGY DEMAND REDUCTION

摘要

A method, apparatus and computer program product for determining lowest cost aggregate energy demand reduction at multiple network levels such as distribution and feeder networks. An algorithm for an optimal incentive mechanism offered to energy customers (e.g. of a utility power entity) that accounts for heterogeneous customer flexibility in load reduction, with the demand response realized via the utility's rebate signal and, accounts for temporal aspects of demand shift in response for rebates. A mathematical formulation of a cost minimization problem is solved to provide incentives for customers to reduce their demand. A gradient descent algorithm is used to solve for the optimal incentives customized for individual end users.