  Price elasticity model (PEM) is an appealing and modest model for assessing
the potential of flexible demand in DR. It measures the customers demand
sensitivity through elasticity in relation to price variation. However,
application of PEM in DR is partially apprehensible on attributing the
adaptability and adjustability with intertemporal constraints in DR. Thus, this
article presents an adaptive economic DR framework with attributes of DR via a
dynamic elasticity approach to model customers sensitivity. This dynamic
elasticity is modeled through the deterministic and stochastic approaches. Both
approaches envision the notion of load recovery for shiftable/flexible loads to
make the proposed DR framework adaptive and adjustable relative to price
variation. In stochastic approach, a geometric Brownian motion is employed to
emulate load recovery with inclusion of intertemporal constraint of load
flexibility. The proposed mathematical model shows what should be the customers
elasticity value to achieve the factual DR. The case study is carried out on
standard IEEE 33 distribution system bus load data to assess technical and
socio-economic impact of DR on customers and is also compared with the exiting
model.

Systems and Control;Systems and Control