Demand Response Under Stochastic, Price-Dependent User Behavior

Fuente: arXiv
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Main Authors: Cavraro, Guido, Bernstein, Andrey, Dall'Anese, Emiliano
Format: Preprint
Published: 2026
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author Cavraro, Guido
Bernstein, Andrey
Dall'Anese, Emiliano
author_facet Cavraro, Guido
Bernstein, Andrey
Dall'Anese, Emiliano
contents This paper focuses on price-based residential demand response implemented through dynamic adjustments of electricity prices during DR events. It extends existing DR models to a stochastic framework in which customer response is represented by price-dependent random variables, leveraging models and tools from the theory of stochastic optimization with decision-dependent distributions. The inherent epistemic uncertainty in the customers' responses renders open-loop, model-based DR strategies impractical. To address this challenge, the paper proposes to employ stochastic, feedback-based pricing strategies to compensate for estimation errors and uncertainty in customer response. The paper then establishes theoretical results demonstrating the stability and near-optimality of the proposed approach and validates its effectiveness through numerical simulations.
format Preprint
id arxiv_https___arxiv_org_abs_2603_15983
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Demand Response Under Stochastic, Price-Dependent User Behavior
Cavraro, Guido
Bernstein, Andrey
Dall'Anese, Emiliano
Systems and Control
This paper focuses on price-based residential demand response implemented through dynamic adjustments of electricity prices during DR events. It extends existing DR models to a stochastic framework in which customer response is represented by price-dependent random variables, leveraging models and tools from the theory of stochastic optimization with decision-dependent distributions. The inherent epistemic uncertainty in the customers' responses renders open-loop, model-based DR strategies impractical. To address this challenge, the paper proposes to employ stochastic, feedback-based pricing strategies to compensate for estimation errors and uncertainty in customer response. The paper then establishes theoretical results demonstrating the stability and near-optimality of the proposed approach and validates its effectiveness through numerical simulations.
title Demand Response Under Stochastic, Price-Dependent User Behavior
topic Systems and Control
url https://arxiv.org/abs/2603.15983