A multi-layered adaptive load management (ALM) system: Information exchange between market participants for efficient and reliable energy use

In this paper, we propose a multi-layered adaptive load management (ALM) system capable of integrating large-scale demand response efficiently and reliably. At the tertiary layer, the system/market operator utilizes demand bid curves provided by the load aggregators on behalf of the end-users they serve. This information is processed by the system/market operator together with the bid curves provided by the generators. The information is further used to estimate electricity price and send it to load aggregators. Similarly, at the secondary layer, the load aggregators utilize the demand curves provided to them by the individual end-users. Based on the end-users´ requests and the estimated electricity price given by the system/market operator, load aggregators create aggregate demand curves on behalf of all their users, and share them with both the system operator and their own customers. Finally, at the primary layer, individual end-users create their own demand functions while taking into consideration their own needs and preferences. They provide this information to their load aggregator. The proposed ALM system is best implemented online. In this paper, we provide a basic formulation of the multi-layered multi-directional decision making and information exchange in support of the ALM system. We illustrate this process using simple simulations. The proposed ALM can be used to implement demand response for different industry rules, such as fixed rate, time-of-use, and real-time pricing.