Economics Working Papers

Publication Date

6-27-2019

Number

19010

Abstract

A household model is formulated to facilitate careful performance testing of bid-based transactive energy system (TES) designs in advance of deployment. Household welfare is expressed by comfort minus cost. Household thermal dynamics are represented by an Equivalent Thermal Parameter (ETP) model based on appliance and house attributes. An optimal bid function is characterized for the household, conditional on its operating state. A method is developed for explicit derivation of this optimal bid function, given discretized forms for the household’s welfare and thermal dynamic functions. A method is also developed for constructing representative household types as correlated collections of welfare and thermal dynamic attributes. Reported test cases demonstrate the usefulness of these results for conducting economically and physically compelling TES performance studies.

JEL Classification

C6, C8, D4, Q4

Version History

Original Release Date: June 27, 2019

Departments

Department of Economics, Iowa State University

File Format

application/pdf

Length

21 pages

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