In this paper we develop a novel mathematical model to describe the localized economic impact of load recovery by electricity consumers following demand response (DR) event participation. In this model—termed "securitization"—cost and benefit associated with an amount of load recovery change exponentially with time-varying stochastic discount rates. These volatile rates, which can be estimated using the principle of Brownian motion, are further examined via case studies on the Roy Billinton test system. A formal application of the proposed recovery model to the crucial task of global DR scheduling is then studied. The study indicates that it is possible to optimize a DR schedule to cater for uncertainty in the subsequent load recovery.

Item Type:	Refereed Article
Keywords:	demand response, demand response exchange, demand response scheduling, load recovery, securitization
Research Division:	Engineering
Research Group:	Electrical engineering
Research Field:	Electrical energy generation (incl. renewables, excl. photovoltaics)
Objective Division:	Energy
Objective Group:	Energy storage, distribution and supply
Objective Field:	Energy systems and analysis
UTAS Author:	Nguyen, DT (Dr Thanh Nguyen)
UTAS Author:	Negnevitsky, M (Professor Michael Negnevitsky)
ID Code:	88390
Year Published:	2013
Web of Science® Times Cited:	23
Deposited By:	Engineering
Deposited On:	2014-01-31
Last Modified:	2017-11-06
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