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IEEE Transactions on Quantum Engineering
Article . 2024 . Peer-reviewed
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https://dx.doi.org/10.48550/ar...
Article . 2023
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Incentivizing Demand-Side Response Through Discount Scheduling Using Hybrid Quantum Optimization

Authors: David Bucher; Jonas Nüßlein; Corey O'Meara; Ivan Angelov; Benedikt Wimmer; Kumar Ghosh; Giorgio Cortiana; +1 Authors

Incentivizing Demand-Side Response Through Discount Scheduling Using Hybrid Quantum Optimization

Abstract

Demand Side Response (DSR) is a strategy that enables consumers to actively participate in managing electricity demand. It aims to alleviate strain on the grid during high demand and promote a more balanced and efficient use of (renewable) electricity resources. We implement DSR through discount scheduling, which involves offering discrete price incentives to consumers to adjust their electricity consumption patterns to times when their local energy mix consists of more renewable energy. Since we tailor the discounts to individual customers' consumption, the Discount Scheduling Problem (DSP) becomes a large combinatorial optimization task. Consequently, we adopt a hybrid quantum computing approach, using D-Wave's Leap Hybrid Cloud. We benchmark Leap against Gurobi, a classical Mixed Integer optimizer in terms of solution quality at fixed runtime and fairness in terms of discount allocation. Furthermore, we propose a large-scale decomposition algorithm/heuristic for the DSP, applied with either quantum or classical computers running the subroutines, which significantly reduces the problem size while maintaining solution quality. Using synthetic data generated from real-world data, we observe that the classical decomposition method obtains the best overall \newp{solution quality for problem sizes up to 3200 consumers, however, the hybrid quantum approach provides more evenly distributed discounts across consumers.

Keywords

Quantum Physics, quantum annealing (QA), problem decomposition, Demand-side response (DSR), quantum computing (QC), FOS: Physical sciences, quadratic unconstrained binary optimization (QUBO), Optimization and Control (math.OC), smart grids, TA401-492, FOS: Mathematics, Atomic physics. Constitution and properties of matter, Quantum Physics (quant-ph), Materials of engineering and construction. Mechanics of materials, Mathematics - Optimization and Control, QC170-197

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Top 10%
Average
Average
Green
gold