Applications of mechanism design in market-based demand-side management: A review

<p dir="ltr">The intermittent nature of renewable energy resources creates extra challenges for the operation and control of the electricity grid. Demand flexibility markets can help in dealing with these challenges by introducing incentives for customers to modify their demand. Mark...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Khaled Abedrabboh (10063125) (author)
مؤلفون آخرون: Luluwah Al-Fagih (10063137) (author)
منشور في: 2023
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author Khaled Abedrabboh (10063125)
author2 Luluwah Al-Fagih (10063137)
author2_role author
author_facet Khaled Abedrabboh (10063125)
Luluwah Al-Fagih (10063137)
author_role author
dc.creator.none.fl_str_mv Khaled Abedrabboh (10063125)
Luluwah Al-Fagih (10063137)
dc.date.none.fl_str_mv 2023-01-01T00:00:00Z
dc.identifier.none.fl_str_mv 10.1016/j.rser.2022.113016
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Applications_of_mechanism_design_in_market-based_demand-side_management_A_review/24501196
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Engineering
Electrical engineering
Electronics, sensors and digital hardware
Demand-side management
Game theory
Mechanism design
Auction
Smart grid
Utility function
dc.title.none.fl_str_mv Applications of mechanism design in market-based demand-side management: A review
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">The intermittent nature of renewable energy resources creates extra challenges for the operation and control of the electricity grid. Demand flexibility markets can help in dealing with these challenges by introducing incentives for customers to modify their demand. Market-based demand-side management (DSM) have garnered serious attention lately due to its promising capability of maintaining the balance between supply and demand, while also taking customers’ preferences into consideration. Many researchers have proposed using concepts from mechanism design theory in their approaches to market-based DSM. In this work, we provide a review of the advances in market-based DSM using mechanism design. We provide a categorisation of the reviewed literature and evaluate the strengths and weaknesses of each design criteria. We also study the utility function formulations used in the reviewed literature and provide a critique of the proposed indirect mechanisms. We show that despite the extensiveness of the literature on this subject, there remains concerns and challenges that should be addressed for the realistic implementation of such DSM approaches. These include privacy concerns, market efficiency, scalability, convergence speed, and modelling the intertemporal dependence of electricity consumption. We draw conclusions from our review and discuss possible future research directions.</p><h2>Other Information</h2><p dir="ltr">Published in: Renewable and Sustainable Energy Reviews<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.rser.2022.113016" target="_blank">https://dx.doi.org/10.1016/j.rser.2022.113016</a></p>
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identifier_str_mv 10.1016/j.rser.2022.113016
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oai_identifier_str oai:figshare.com:article/24501196
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spelling Applications of mechanism design in market-based demand-side management: A reviewKhaled Abedrabboh (10063125)Luluwah Al-Fagih (10063137)EngineeringElectrical engineeringElectronics, sensors and digital hardwareDemand-side managementGame theoryMechanism designAuctionSmart gridUtility function<p dir="ltr">The intermittent nature of renewable energy resources creates extra challenges for the operation and control of the electricity grid. Demand flexibility markets can help in dealing with these challenges by introducing incentives for customers to modify their demand. Market-based demand-side management (DSM) have garnered serious attention lately due to its promising capability of maintaining the balance between supply and demand, while also taking customers’ preferences into consideration. Many researchers have proposed using concepts from mechanism design theory in their approaches to market-based DSM. In this work, we provide a review of the advances in market-based DSM using mechanism design. We provide a categorisation of the reviewed literature and evaluate the strengths and weaknesses of each design criteria. We also study the utility function formulations used in the reviewed literature and provide a critique of the proposed indirect mechanisms. We show that despite the extensiveness of the literature on this subject, there remains concerns and challenges that should be addressed for the realistic implementation of such DSM approaches. These include privacy concerns, market efficiency, scalability, convergence speed, and modelling the intertemporal dependence of electricity consumption. We draw conclusions from our review and discuss possible future research directions.</p><h2>Other Information</h2><p dir="ltr">Published in: Renewable and Sustainable Energy Reviews<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.rser.2022.113016" target="_blank">https://dx.doi.org/10.1016/j.rser.2022.113016</a></p>2023-01-01T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1016/j.rser.2022.113016https://figshare.com/articles/journal_contribution/Applications_of_mechanism_design_in_market-based_demand-side_management_A_review/24501196CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/245011962023-01-01T00:00:00Z
spellingShingle Applications of mechanism design in market-based demand-side management: A review
Khaled Abedrabboh (10063125)
Engineering
Electrical engineering
Electronics, sensors and digital hardware
Demand-side management
Game theory
Mechanism design
Auction
Smart grid
Utility function
status_str publishedVersion
title Applications of mechanism design in market-based demand-side management: A review
title_full Applications of mechanism design in market-based demand-side management: A review
title_fullStr Applications of mechanism design in market-based demand-side management: A review
title_full_unstemmed Applications of mechanism design in market-based demand-side management: A review
title_short Applications of mechanism design in market-based demand-side management: A review
title_sort Applications of mechanism design in market-based demand-side management: A review
topic Engineering
Electrical engineering
Electronics, sensors and digital hardware
Demand-side management
Game theory
Mechanism design
Auction
Smart grid
Utility function