Framework of Residential Demand Aggregation With Financial Incentives

The development of intelligent demand-side management with automatic control enables a large amount of residential demands to provide efficient demand-side ancillary services for load serving entities. In this paper, we introduce the concept of a comfort indicator, present an advanced reward system, and finally propose a framework for aggregating residential demands enrolled in incentive-based demand response (DR) programs. The proposed framework not only allocates load serving entities' demand reduction requests among residential appliances quickly and efficiently without affecting residents' comfort levels but also rewards residential consumers based on their actual participation. Also, since the framework is designed with the practical considerations of simplicity and efficiency, it can be utilized as a quick implementation for existing pilot development works. The effectiveness and merit of this framework are demonstrated and discussed in the comparison studies with conventional incentive-based DR.