| Abstract: |
| Demand Response (DR) provides both operational and financial benefits to a variety of stakeholders in the power
system. For example, in the deregulated market operated by the Electric Reliability Council of Texas (ERCOT), load
serving entities (LSEs) usually purchase electricity from the wholesale market (either in day-ahead or real-time
market) and sign fixed retail price contracts with their end-consumers. Therefore, incentivizing end-consumers’ load
shift from peak to off-peak hours could benefit the LSE in terms of reducing its purchase of electricity under high
prices from the real-time market. As the first-of-its-kind implementation of Coupon Incentive-based Demand
Response (CIDR), the EnergyCoupon project provides end-consumers with dynamic time-of-use DR event
announcements, individualized load reduction targets with EnergyCoupons as the incentive for meeting these
targets, as well as periodic lotteries using these coupons as lottery tickets for winning dollar-value gifts. A number
of methodologies are developed for this special type of DR program including price/baseline prediction,
individualized target setting and a lottery mechanism. This paper summarizes the methodologies, design, critical
findings, as well as the potential generalization of such an experiment. Comparison of the EnergyCoupon with a
conventional Time-of-Use (TOU) price-based DR program is also conducted. Experimental results in the year 2017
show that by combining dynamic coupon offers with periodic lotteries, the effective cost for demand response
providers in EnergyCoupon can be substantially reduced, while achieving a similar level of demand reduction as
conventional DR programs. |
| Key words: EnergyCoupon, Incentive-based demand response, Critical peak pricing, Electricity market, Prospect
theory |
| DOI：10.1186/s41601-020-00155-x |
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| Fund: |
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