An adaptive demand response framework using price elasticity model in distribution networks

Price elasticity model (PEM) is an appealing and modest model for assessing the potential of flexible demand in demand response (DR). It measures the customer's demand sensitivity through elasticity in relation to price variation. However, application of PEM is partially apprehensible on attributing the adaptability and adjustability along with intertemporal constraints in DR. Thus, this article presents an adaptive economic DR framework with its attributes via a dynamic elasticity approach to model customer's demand sensitivity. This dynamic elasticity is modeled through the deterministic and stochastic approaches. Both approaches envision the notion of load recovery for shiftable/flexible loads to make the proposed framework adaptive and adjustable relative to price variation. In stochastic approach, a geometric Brownian motion is employed to emulate load recovery in addition to intertemporal constraint of load flexibility. The proposed mathematical model shows what should be the customers elasticity value to achieve the factual DR. The numerical study is carried out on standard IEEE 33 distribution system bus load data to assess its technical and socio-economic impact on customers and is also compared with the existing model.