Speaker: Meltem Peker
Date & Time: April 28, 2023, Friday 13:30
Title: Impact of Customer Location in Portfolio Optimization of Flexibility Providers Under Uncertainty
Abstract: Residential demand response (DR) flexibility is a valuable resource for addressing concerns related to network congestion, system imbalances, and customer costs. To optimize the utilization of DR flexibility in the distribution networks, there have been discussions about which entities should promote the implementation of DR programs and which flexibility providers should be contracted. This study investigates two distinctive business models for implementing DR
programs: aggregator-driven and operator-driven. Since the goals of the business models differ, the most efficient service requires the selection of flexibility providers. The proposed adaptive robust optimization model determines the optimal portfolio (i.e., locations of flexibility providers) by considering network constraints, appliance scheduling, customer preferences, and their uncertainties. We compare the outcomes of the business models, such as the cost of electricity consumption, peak load, and customer portfolio. In the numerical study, we quantitatively compare the two distinct business models and emphasize the importance of flexibility provider locations in portfolio selection.
Our case study results demonstrate that both entities benefit the most from DR when 50% of the customers involved in DR programs, regardless of which entity adopts DR initiatives toward its objective. Customer locations are also shown to be more important in operator-driven business models, and customers located further from the substation become more valuable with uncertainty. While the DR involvement level at all buses is less than 80% without uncertainty, the level is 100% at four buses located farthest from the substation.
Bio: Meltem Peker received her Ph.D. from the Department of Industrial Engineering at Bilkent University. After completing her Ph.D., she worked as a research associate at Newcastle University for two years.
She is currently a part-time lecturer at Bilkent University. Her research interests include the design and operations of sustainable energy and logistics systems, and electricity market design.