With introducing demand response provider (DRP) in smart grid paradigm, small consumers can actively participate in various demand response programs, especially price-based programs. This newly important matter can significantly affect the power system problems, such as expansion planning. Accordingly, consideration of small consumers via DRP in longterm market equilibrium can be notably useful. This paper proposes a bi-level game framework with iterating between master and slave level to find the long-term market equilibrium in the pool-based market, including opponent generation companies (GenCos), DRP, and independent system operator (ISO). In the master level, a set of investment decisions are generated. Then, the system information is updated and the market is cleared in the slave level. After evaluating all decision-making options, the ISO selects the best option based on a tradeoff analysis. The proposed method is examined on a system with one DRP and two GenCos under ISOs supervision.Index Terms-Advanced metering infrastructure (AMI), demand response provider (DRP), expansion planning, game theory, long-term market equilibrium, smart grid, supply function equilibrium (SFE).
Parameters
ALNumber of expansion option.
SUMMARYWith introducing demand response aggregator (DRA) in smart paradigm, small customers can actively participate in price and incentive-based demand response programs. This new matter can significantly affect many factors of power system such as transmission network security. Accordingly, it is notably useful to define an adjusted framework for transmission expansion planning in smart environment. A long-term market simulation is performed using a tri-level iterative framework to find the best expansion decisions for transmission company (TransCo) in a pool-based market. The TransCo's investment decisions are made by a merchant approach consistent with transmission network security and smart environment. The effects of smart environment on future network configuration, strategic bidding of generators in the market operation, and contingency analysis are considered during planning process. The effectiveness of proposed method is examined on the IEEE 24-bus system with one DRA, one TransCo, and two generation companies under the independent system operator's supervision.
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