Scope
Minou et al. elaborate that the decision making process of the users is not purely rational and dependent on the monetary incentives provided, but it is governed by a number of factors, including altruism.
Summary
In this work, the means of user engagement in ADR contracts is studied when altruism is present in different degrees with the goal of optimising demand reduction. The correlation between altruism, financial incentives and social welfare is investigated for the design of efficient user targeting strategies for automatic demand response. The results suggest that when altruism is taken into account, the social welfare is improved and the incentivisation cost for the provider reduces. On the other hand, the authors emphasise the fact that altruists should not be overwhelmed with power reduction requests, because this will damage the social welfare of the system.
Relevance for EXIGENCE
Minou et al.‘s work elaborates on incentives that are correlated with the user net benefit. It is also attempted to model the effect of altruism in the utility function. Targeting techniques are explored to optimise social welfare and provider incentivisation costs. The above considerations can serve as a basis and be employed in conjunction with other mechanisms for the building of the EXIGENCE incentivisation framework.
Minou, G. D. Stamoulis and T. G. Papaioannou, “The effect of altruism in automated demand response for residential users,” 2017 IEEE PES Innovative Smart Grid Technologies Conference Europe (ISGT-Europe), Turin, Italy, 2017, pp. 1-6.
