On Transfer Function Modeling of Price Responsive Demand: An Empirical Study
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2015 IEEE. This paper poses the problem of modeling price responsive demand as one of identifying the transfer function between the price and power consumption. This is motivated by the team's earlier work of econometric estimation of the self- and cross-elasticity of demand response. It is discovered that electricity consumption has several unique features that may render the traditional approach ineffective. Such features include (1) nonlinear response between moderate and extremely high prices; and (2) time delay associated with any response from high prices. Based on the realistic data obtained from commercial and industrial loads in Texas, a transfer function modeling of price responsive demand is proposed. The effectiveness of this modeling approach is critically assessed. It is suggested that a transfer function modeling of price responsive demand could potentially be a fruitful direction to understand and close the loop around demand response in the smart grid.
