Data mining for remuneration of consumers demand response participation

Abstract

With the implementation of micro grids and smart grids, new business models able to cope with the new opportunities are being developed. Virtual Power Players are a player that allows aggregating a diversity of entities, to facilitate their participation in the electricity markets and to provide a set of new services promoting generation and consumption efficiency, while improving players’ benefits. The elastic behavior of the demand consumption jointly used with other available resources such as distributed generation (DG) can play a crucial role for the success of smart grids. This paper proposes methodologies to develop strategic remuneration of aggregated consumers with demand response participation, this model uses a clustering algorithm, applied on values that were obtained from a scheduling methodology of a real Portuguese distribution network with 937 buses, 20310 consumers and 548 distributed generators. The normalization methods and clustering methodologies were applied to several variables of different consumers, which creates sub-groups of data according to their correlations. The clustering process is evaluated so that the number of data sub-groups that brings the most added value for the decision-making process is found, according to players characteristics.