Incentive-Based Demand Response Scheduling of Air-Conditioning Loads in Load-Type Virtual Power Plants: Balancing User Revenue and Satisfaction

Large-scale and widely distributed air-conditioning (AC) loads can be aggregated into load-type Virtual Power Plants (VPPs) to participate in peak-shaving ancillary services, thereby improving the allocation of demand-side electricity resources. However, current AC aggregation methods primarily focus on meeting peak-shaving instructions and generally employ fixed incentive pricing and proportional capacity allocation, making it difficult to balance user revenue and satisfaction and thereby constraining the flexibility of VPP demand-side regulation. This paper proposes a unified incentive-based demand response scheduling framework for both fixed- and variable-frequency AC loads across industrial, commercial, and residential scenarios. Based on the Equivalent Thermal Parameter model, AC loads are classified into curtailable and shiftable types, with their adjustable boundaries characterized by a Time-of-Use (TOU) elasticity-based interaction willingness model and a fuzzy load transfer rate model, respectively. A three-objective optimization model is established to maximize user revenue while minimizing user dissatisfaction and scheduling error, with incentive pricing and capacity allocation jointly optimized via Non-dominated Sorting Genetic Algorithm III (NSGA-III). Case studies are conducted on a load-type VPP covering three scenarios, namely a large industrial zone, a commercial zone, and a residential zone, under weekday and non-weekday TOU tariffs and three representative 1 h peak-shaving periods. Compared with a fixed-pricing benchmark, the proposed strategy increases total user revenue by 9.4% to 11.4% and reduces weighted average dissatisfaction by 0.27 to 1.92%. The case study results demonstrate that the proposed method can improve the trade-off between user revenue and satisfaction.

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Publication Details

Journal
Energies
Published
2026-04-22
DOI
https://doi.org/10.3390/en19092028
Primary Topic
Smart Grid Energy Management
Type
article
Field-Weighted Citation Impact
0.00

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article

Incentive-Based Demand Response Scheduling of Air-Conditioning Loads in Load-Type Virtual Power Plants: Balancing User Revenue and Satisfaction

Butian Chen, Danhong Lu, Qi Cheng, Han Wu et al.
Energies
Smart Grid Energy Management
article

Incentive-Based Demand Response Scheduling of Air-Conditioning Loads in Load-Type Virtual Power Plants: Balancing User Revenue and Satisfaction

Butian Chen, Danhong Lu, Qi Cheng, Han Wu, Yiming Zhu, Dongwei Wu
article en

Abstract

Large-scale and widely distributed air-conditioning (AC) loads can be aggregated into load-type Virtual Power Plants (VPPs) to participate in peak-shaving ancillary services, thereby improving the allocation of demand-side electricity resources. However, current AC aggregation methods primarily focus on meeting peak-shaving instructions and generally employ fixed incentive pricing and proportional capacity allocation, making it difficult to balance user revenue and satisfaction and thereby constraining the flexibility of VPP demand-side regulation. This paper proposes a unified incentive-based demand response scheduling framework for both fixed- and variable-frequency AC loads across industrial, commercial, and residential scenarios. Based on the Equivalent Thermal Parameter model, AC loads are classified into curtailable and shiftable types, with their adjustable boundaries characterized by a Time-of-Use (TOU) elasticity-based interaction willingness model and a fuzzy load transfer rate model, respectively. A three-objective optimization model is established to maximize user revenue while minimizing user dissatisfaction and scheduling error, with incentive pricing and capacity allocation jointly optimized via Non-dominated Sorting Genetic Algorithm III (NSGA-III). Case studies are conducted on a load-type VPP covering three scenarios, namely a large industrial zone, a commercial zone, and a residential zone, under weekday and non-weekday TOU tariffs and three representative 1 h peak-shaving periods. Compared with a fixed-pricing benchmark, the proposed strategy increases total user revenue by 9.4% to 11.4% and reduces weighted average dissatisfaction by 0.27 to 1.92%. The case study results demonstrate that the proposed method can improve the trade-off between user revenue and satisfaction.

EnergiesVol. 19(9)
Nanjing Institute of Technology (CN)
Government of Jiangsu Province, Natural Science Foundation of Jiangsu Province
Openalex Percentile: Top 22%
Smart Grid Energy Management
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