Virtual storages as theoretically motivated demand response models for enhanced smart grid operations

Additional flexibilities on the demand side can be obtained by using price signals to change the consumption behavior of household electricity customers. The present contribution proposes a new theoretically motivated demand response model type called virtual storage. First, the basic model structure of several virtual storage models is introduced. All of these models are based on a system of difference equations that describe load reductions/increases in response to price signals. The virtual storage models differ thereafter in how past or prognosis-based future price information is considered. After a description of a proposed model validation strategy, the model behavior of several virtual storage models is compared with some of the common demand response model types and with re-al customer responses to a price signal. Thus, a model comparison is performed on the basis of a real smart meter data set (Olympic Peninsula Project).