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Hauptverfasser: Pashaki, Shafagh Abband, Maleki, Sepehr, Badiee, Amir
Format: Preprint
Veröffentlicht: 2026
Schlagworte:
Online-Zugang:https://arxiv.org/abs/2602.16525
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author Pashaki, Shafagh Abband
Maleki, Sepehr
Badiee, Amir
author_facet Pashaki, Shafagh Abband
Maleki, Sepehr
Badiee, Amir
contents This paper presents a capacity-constrained incentive-based demand response approach for residential smart grids. It aims to maintain electricity grid capacity limits and prevent congestion by financially incentivising end users to reduce or shift their energy consumption. The proposed framework adopts a hierarchical architecture in which a service provider adjusts hourly incentive rates based on wholesale electricity prices and aggregated residential load. The financial interests of both the service provider and end users are explicitly considered. A deep reinforcement learning approach is employed to learn optimal real-time incentive rates under explicit capacity constraints. Heterogeneous user preferences are modelled through appliance-level home energy management systems and dissatisfaction costs. Using real-world residential electricity consumption and price data from three households, simulation results show that the proposed approach effectively reduces peak demand and smooths the aggregated load profile. This leads to an approximately 22.82% reduction in the peak-to-average ratio compared to the no-demand-response case.
format Preprint
id arxiv_https___arxiv_org_abs_2602_16525
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Capacity-constrained demand response in smart grids using deep reinforcement learning
Pashaki, Shafagh Abband
Maleki, Sepehr
Badiee, Amir
Machine Learning
This paper presents a capacity-constrained incentive-based demand response approach for residential smart grids. It aims to maintain electricity grid capacity limits and prevent congestion by financially incentivising end users to reduce or shift their energy consumption. The proposed framework adopts a hierarchical architecture in which a service provider adjusts hourly incentive rates based on wholesale electricity prices and aggregated residential load. The financial interests of both the service provider and end users are explicitly considered. A deep reinforcement learning approach is employed to learn optimal real-time incentive rates under explicit capacity constraints. Heterogeneous user preferences are modelled through appliance-level home energy management systems and dissatisfaction costs. Using real-world residential electricity consumption and price data from three households, simulation results show that the proposed approach effectively reduces peak demand and smooths the aggregated load profile. This leads to an approximately 22.82% reduction in the peak-to-average ratio compared to the no-demand-response case.
title Capacity-constrained demand response in smart grids using deep reinforcement learning
topic Machine Learning
url https://arxiv.org/abs/2602.16525