Investigating Impacts of CVR and Demand Response Operations on a Bi-Level Market-Clearing With a Dynamic Nodal Pricing

Abstract

This paper investigates the impacts of conservation voltage reduction (CVR) on electricity prices, the local market, and technical issues in distribution networks. An increase in electricity demand is one of the key challenges for developing sustainable societies. An increase in electric consumption puts immense pressure on electricity providers, which forces them to apply for load reduction programs during peak-demand time intervals. The CVR is one of the popular methods for load reduction, but how it would impact the pricing process and electricity market at the distribution level needs further investigation.