Optimal Power Procurement and Demand Response With Quality-of-Usage Guarantees
In this paper, the authors propose a general operating scheme which allows the utility company to jointly perform power procurement and demand response so as to maximize the social welfare. Their model takes into consideration the effect of the renewable energy and the multi-stage feature of the power procurement process. It also enables the utility company to provide Quality-of-Usage (QoU) guarantee to the power consumers, which ensures that the average power usage level meets the target value for each user. To maximize the social welfare, they develop a low-complexity algorithm called the welfare maximization algorithm (WMA), which performs joint power procurement and dynamic pricing.