March 31, 2016
Journal Article

Market-Based Coordination of Thermostatically Controlled Loads—Part I: A Mechanism Design Formulation

Abstract

This paper focuses on the coordination of a population of Thermostatically Controlled Loads (TCLs) with unknown parameters to achieve group objectives. The problem involves designing the bidding and market clearing strategy to motivate self-interested users to realize efficient energy allocation subject to a peak power constraint. Using the mechanism design approach, we propose a market-based coordination framework, which can effectively incorporate heterogeneous load dynamics, systematically deal with user preferences, account for the unknown load model parameters, and enable the real-world implementation with limited communication resources. This paper is divided into two parts. Part I presents a mathematical formulation of the problem and develops a coordination framework using the mechanism design approach. Part II presents a learning scheme to account for the unknown load model parameters, and evaluates the proposed framework through realistic simulations.

Revised: December 15, 2016 | Published: March 31, 2016

Citation

Li S., W. Zhang, J. Lian, and K. Kalsi. 2016. Market-Based Coordination of Thermostatically Controlled Loads—Part I: A Mechanism Design Formulation. IEEE Transactions on Power Systems 31, no. 2:1170-1178. PNNL-SA-104887. doi:10.1109/TPWRS.2015.2432057