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Title: Negawatt planning via stochastic programming

Authors: Masahiro Yamada; Tomoki Fukuba; Takayuki Shiina; Ken-ichi Tokoro

Addresses: Waseda University, 3-4-1 Okubo, Shinjuku-ku, Tokyo 169-8555, Japan ' Waseda University, 3-4-1 Okubo, Shinjuku-ku, Tokyo 169-8555, Japan ' Waseda University, 3-4-1 Okubo, Shinjuku-ku, Tokyo 169-8555, Japan ' Central Research Institute of Electric Power Industry, 2-6-1 Nagasaka, Yokosuka, Kanagawa, 240-0196, Japan

Abstract: Power suppliers generate electricity constantly to ensure that the power generated equals demand. The vast daily fluctuations in electricity demand result in very high generation costs. One of the solutions to this problem is known as negawatt trading. This is a contract between power suppliers and customers that involves the promise of a fixed amount of power demand reduction in advance. In this study, a stochastic programming model is formulated for a negawatt planning operation, considering the uncertainty of the power demand and the probability of the customer's failure to reduce it. The stochastic programming method was used to optimise the operation, maximising the profit for customers, and its effect was verified. The experiment results show that customers can choose an operation method tailored to their strategy while controlling the value of the failure probability. Compared to using a deterministic model, this stochastic programming model ensures high profits and a stable supply to consumers.

Keywords: electric power; negawatt trading; stochastic programming.

DOI: 10.1504/AJMSA.2020.111517

Asian Journal of Management Science and Applications, 2020 Vol.5 No.1, pp.40 - 55

Received: 01 Mar 2020
Accepted: 13 Apr 2020

Published online: 17 Nov 2020 *

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