Application
Dynamic Price Incentivization for Carbon Emission Reduction using Quantum Optimization

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 electricity resources. We implement DSR through discount scheduling, which involves offering discrete price incentives to consumers to adjust their electricity consumption patterns. 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 observe an indication that Leap performs better compared to Gurobi, a classical general-purpose optimizer, in our test setup. Furthermore, we propose a specialized decomposition algorithm for the DSP that significantly reduces the problem size, while maintaining an exceptional solution quality. We use a mix of synthetic data, generated based on real-world data, and real data to benchmark the performance of the different approaches.

COMPANY : Aqarios GmbH, Ludwig-Maximilians Universitat, Tresckowstraße 5, Comsysto Reply GmbH
INDUSTRY : Energy