Modified deep learning and reinforcement learning for an incentive-based demand response model

Abstract Incentive-based demand response (DR) program can induce end users (EUs) to reduce electricity demand during peak period through rewards. In this study, an incentive-based DR program with modified deep learning and reinforcement learning is proposed. A modified deep learning model based on recurrent neural network (MDL-RNN) was first proposed to identify the future uncertainties of environment by forecasting day-ahead wholesale electricity price, photovoltaic (PV) power output, and power load. Then, reinforcement learning (RL) was utilized to explore the optimal incentive rates at each hour which can maximize the profits of both energy service providers (ESPs) and EUs. The results showed that the proposed modified deep learning model can achieve more accurate forecasting results compared with some other methods. It can support the development of incentive-based DR programs under uncertain environment. Meanwhile, the optimized incentive rate can increase the total profits of ESPs and EUs while reducing the peak electricity demand. A short-term DR program was developed for peak electricity demand period, and the experimental results show that peak electricity demand can be reduced by 17%. This contributes to mitigating the supply-demand imbalance and enhancing power system security.