A Comprehensive Demand Response Strategy Considering Household Comfort and Economy

With the emerging smart grid technology, communication between residential customers and load aggregator (LA) is becoming more common which facilitates the implementation of incentive-based demand response (IBDR). As a type of IBDR, load shedding plays a potential role in reducing supply cost and improving extra revenue in electric utilities sector as well as increasing the energy efficiency and economic income in residential side. In this paper, a residential welfare model based on utility function is proposed, by considering the electricity consumption preferences to analyze the welfare of users after participating in IBDR which includes comfort loss and incentives. Subsequently, an IBDR strategy considering consumption is presented considering household comfort and economy. The purpose of this strategy is to maximize the revenue of load aggregators while increasing the welfare of residential sector in IBDR event.