PEAK demand hours, which happen for only a portion of
time in any given year, renders the existing U.S. power
grid less efficient. For example, 10% of all generation assets
and 25% of distribution infrastructure are required for less than
400 hours per year, roughly 5% of the time [1]. One way to
overcome this inefficiency is to modify demand, particularly
during peak hours, which is the focus of demand response
(DR) programs.
Future DR efforts will be enhanced by emerging smart grid
infrastructure which provides greater information, flexibility
and control to electricity suppliers, grid operators, and end-use
consumers. A key feature of the smart grid is the smart meter
which facilitates real-time information exchange between
electricity service providers and their customers. One way in
which service providers may influence consumer demand is to
use the metering infrastructure to deliver “real-time” electricity
prices, e.g., once every fifteen minutes. The extent to which
these time-varying prices may make overall demand more
controllable (especially during peak hours) depends greatly
on the consumer’s ability to quickly and effectively respond
PEAK demand hours, which happen for only a portion of
time in any given year, renders the existing U.S. power
grid less efficient. For example, 10% of all generation assets
and 25% of distribution infrastructure are required for less than
400 hours per year, roughly 5% of the time [1]. One way to
overcome this inefficiency is to modify demand, particularly
during peak hours, which is the focus of demand response
(DR) programs.
Future DR efforts will be enhanced by emerging smart grid
infrastructure which provides greater information, flexibility
and control to electricity suppliers, grid operators, and end-use
consumers. A key feature of the smart grid is the smart meter
which facilitates real-time information exchange between
electricity service providers and their customers. One way in
which service providers may influence consumer demand is to
use the metering infrastructure to deliver “real-time” electricity
prices, e.g., once every fifteen minutes. The extent to which
these time-varying prices may make overall demand more
controllable (especially during peak hours) depends greatly
on the consumer’s ability to quickly and effectively respond
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