Optimal Renewable Penetration in Energy Procurement and Demand Response

Xuanyu Cao, Junshan Zhang, H. Vincent Poor

Research output: Chapter in Book/Report/Conference proceedingConference contribution


In this paper, joint energy procurement and demand response is studied from the perspective of the operator of a power system. The operator procures energy from both renewable energy sources (RESs) and the spot market. We observe the fact that the RESs may incur considerable infrastructure cost. This cost is taken into account and the optimal planning of renewables is examined by controlling the investment in RES infrastructures. Due to the uncertainty of renewables, the operator can also purchase energy directly from the spot market to compensate for the possible deficit incurred by the realization of the random renewable energy. By setting appropriate prices, the operator sells the collected energy to heterogeneous end users with different demand response characteristics. We model the decision making process of the operator as a two-stage optimization problem. The optimal decisions on the renewable deployment, energy purchase from the spot market and pricing schemes are derived. Several solution structures are observed and a computationally efficient algorithm, requiring only closed-form calculation and simple bisection search, is proposed to compute the optimal decisions. Finally, numerical experiments are conducted to verify the optimality of the proposed algorithm and the solution structures observed theoretically.

Original languageEnglish (US)
Title of host publication2018 IEEE International Conference on Communications, ICC 2018 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Print)9781538631805
StatePublished - Jul 27 2018
Event2018 IEEE International Conference on Communications, ICC 2018 - Kansas City, United States
Duration: May 20 2018May 24 2018

Publication series

NameIEEE International Conference on Communications
ISSN (Print)1550-3607


Other2018 IEEE International Conference on Communications, ICC 2018
Country/TerritoryUnited States
CityKansas City

All Science Journal Classification (ASJC) codes

  • Computer Networks and Communications
  • Electrical and Electronic Engineering


Dive into the research topics of 'Optimal Renewable Penetration in Energy Procurement and Demand Response'. Together they form a unique fingerprint.

Cite this