Multi-stage Coupon Incentive-based Demand Response In Two-settlement Electricity Markets

Authors: Haiwang Zhong; Le Xie; Qing Xia; Chongqing Kang; Saifur Rahman
Publisher: 2015 IEEE Power & Energy Society Innovative Smart Grid Technologies Conference (ISGT)
Published on: 06/25/2015
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This paper extends our recent work and proposes a multi-stage coupon incentive-based demand response (M-CIDR) in two-settlement electricity markets. In contrast to the realtime pricing (RTP) or critical peak pricing (CPP) demand response programs, M-CIDR continues to offer a flat rate to retail customers and additional voluntary incentives to induce demand response. Compared with single-stage CIDR, a unit commitment model is employed so that the inter-temporal constraints can be considered conveniently. Theoretical analysis shows the benefits of the proposed scheme in two-settlement electricity markets. And numerical illustration is performed in the IEEE 30 bus system. The results show that during the periods with price spikes, the proposed M-CIDR can effectively induce demand response, reduce market clearing prices, obtain a social welfare which is close to that in the RTP scheme.

Multi-stage Coupon Incentive-based Demand Response (M-CIDR) , Two-settlement System , Real-Time Price (RTP) , Smart Grid Communication , Electricity Markets