Negawatt planning via stochastic programming Online publication date: Mon, 30-Nov-2020
by Masahiro Yamada; Tomoki Fukuba; Takayuki Shiina; Ken-ichi Tokoro
Asian J. of Management Science and Applications (AJMSA), Vol. 5, No. 1, 2020
Abstract: Power suppliers generate electricity constantly to ensure that the power generated equals demand. The vast daily fluctuations in electricity demand result in very high generation costs. One of the solutions to this problem is known as negawatt trading. This is a contract between power suppliers and customers that involves the promise of a fixed amount of power demand reduction in advance. In this study, a stochastic programming model is formulated for a negawatt planning operation, considering the uncertainty of the power demand and the probability of the customer's failure to reduce it. The stochastic programming method was used to optimise the operation, maximising the profit for customers, and its effect was verified. The experiment results show that customers can choose an operation method tailored to their strategy while controlling the value of the failure probability. Compared to using a deterministic model, this stochastic programming model ensures high profits and a stable supply to consumers.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Asian J. of Management Science and Applications (AJMSA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook