Queuing models for providing quality of service to transactive loads

Demand Side Management (DSM) and Demand-Response (DR) programs are aimed at exploiting the intrinsic elasticity of electricity demand to make it responsive to the near term cost of supplying generation. Loads that automatically respond to incentives, are referred to as “transactive”. While it is clear that DSM and DR will be indispensable to loosen the control over the generation and decrease the reserves requirements, there is much debate on what is the right architecture for DSM and DR programs. It is possible that one solution will not fit all possible loads. In this talk, we discuss a model to digitize and aggregate smart loads requests that allows to properly account for inconvenience costs, while modulating the load demand time optimally to come as close as possible to the energy dispatch. We envision that, in addition to pricing, rewarding the tolerance to service delays can be considered as additional powerful mechanism to operate the market efficiently, especially when tapping in micro-grid green generation. The solution we propose provides a natural model for Vehicles to Grid service (V2G), that can be easily extended to a large class of transactive loads.