A Contract-based Framework for Integrated Demand Response Management in Smart Grids

Abstract

Demand Response (DR) is considered a promising approach to cope with the increasing variability in power grids due to the penetration of renewable energy sources. However, it still remains a challenge to manage the aggregation of a large number of heterogeneous loads to achieve a desired response, especially at a fast time scale. In this paper, we present a system-level modeling and control design approach for DR management in smart grids, by following a contract-based methodology. Given a set of flexible DR loads, capable of adapting their power consumption upon external requests, we find a strategy for an aggregator to optimally track a DR requirement by combining the individual contributions of the DR components. In our framework, both the design requirements and the DR components' interfaces are specified by assume-guarantee contracts expressed using mixed-integer linear constraints. Contracts are used to formulate an optimal control problem, which is solved repeatedly over time, in a receding horizon fashion. We illustrate the effectiveness of our methodology for a set of DR components including fans and pumps, showing that it enables modular development of non-disruptive DR control schemes.