Integrated scheduling of generation and demand shifting in day‐ahead electricity market

Abstract

Summary The increasing penetration of renewable generation significantly challenges the balancing between generation and demand in power systems. The traditional method that relies on dispatching generating units to satisfy load demand has shown its limitations in coping with the augmented volatility in the system. On the other hand, the introduction of smart grid technologies facilitates customers' interactions with the grid and makes them the provider of demand response (DR) resource. In this paper, we focus on the demand shifting as the major form of DR and propose an integrated demand shifting bidding framework to aggregate DR resources from both large and small customers. A market clearing model is proposed for the ISO to formalize the day‐ahead scheduling of both generation and the demand shifting resources. The demand shifting cost is also proposed which can be used as a tool for load aggregators to reward the customers. The model is simulated on the IEEE 30‐bus system, and results successfully demonstrate that the proposed model can reduce peak load, system cost, and price spikes.

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