A multi-agent based optimization of residential and industrial demand response aggregators

Today's power systems are subject to the high penetration of renewable power. Volatility and intermittency of the renewable power need to be compensated through alternative forms of flexibility. This paper proposes a novel agent-based structure to integrate the flexibility potential of industrial and residential demands. In this approach, a central demand response provider (DRP) is suggested to coordinate the responsive plans of industrial and residential demand response aggregators (IDRA, RDRA). The suggested IDRA integrates the flexibility potential of whole production lines for two energy-intensive heavy industries, i.e. cement manufacture and metal smelting. Besides, the RDRA uses the thermal and electrical storage capabilities of thermostatically-controlled appliances (TCAs) and electrical storage systems linked with roof-top photovoltaic (ESS-RPV) sites through home energy management systems (HEMS). The integrated flexibility is traded in the electricity market to maximize the profit of the market participants in a competitive environment, instead of subsidizing the responsive consumers by supportive regulations. Finally, the suggested structure is tested on the Danish sector of the Nordic Electricity Market to show applicability and proficiency of the proposed approach. The results show that the integrated flexibility can safeguard the future of power systems against the intermittent power.