Generalizing demand response through reward bidding

Hongyao Ma, David C. Parkes, Valentin Robu

Research output: Chapter in Book/Conference proceedings/Edited volumeConference contributionScientificpeer-review

11 Citations (Scopus)

Abstract

Demand-side response (DR.) is emerging as a crucial technology to assure stability of modern power grids. The uncertainty about the cost agents face for reducing consumption imposes challenges in achieving reliable, coordinated response. In recent work, Ma et al. [13] introduce DR as a mechanism design problem and solve it for a setting where an agent has a binary preparation decision and where, contingent on preparation, the probability an agent will be able to reduce demand and the cost to do so are fixed. We generalize this model to allow uncertainty in agents' costs of responding, and also multiple levels of effort agents can exert in preparing. For both cases, the design of contingent payments now affects the probability of response. We design a new, truthful and reliable mechanism that uses a "reward- bidding" approach rather than the "penalty-bidding" approach It has good performance when compared to natural benchmarks. The mechanism also extends to handle multiple units of demand response from each agent.

Original languageEnglish
Title of host publication16th International Conference on Autonomous Agents and Multiagent Systems, AAMAS 2017
EditorsEdmund Durfee, Sanmay Das, Kate Larson, Michael Winikoff
PublisherInternational Foundation for Autonomous Agents and Multiagent Systems (IFAAMAS)
Pages60-68
Number of pages9
ISBN (Electronic)9781510855076
Publication statusPublished - 1 Jan 2017
Externally publishedYes
Event16th International Conference on Autonomous Agents and Multiagent Systems, AAMAS 2017 - Sao Paulo, Brazil
Duration: 8 May 201712 May 2017

Publication series

NameProceedings of the International Joint Conference on Autonomous Agents and Multiagent Systems, AAMAS
Volume1
ISSN (Print)1548-8403
ISSN (Electronic)1558-2914

Conference

Conference16th International Conference on Autonomous Agents and Multiagent Systems, AAMAS 2017
CountryBrazil
CitySao Paulo
Period8/05/1712/05/17

Keywords

  • Demand response
  • Mechanism design
  • Reliability bounds

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