Long-Term Market Equilibrium in Smart Grid Paradigm With Introducing Demand Response Provider in Competition

Abstract

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.

Energy station and distribution network collaborative planning of integrated energy system based on operation optimization and demand response

“…The demand response of energy station includes two parts, such as the response of energy storage device based on power price, and the demand response of users based on dynamic subsidies. The response model of energy storage device constructed in References is used in this paper, which can describe the response of energy storage device in energy station according to the power price. The demand response mechanism of users is mainly introduced based on dynamic subsidies, as shown below.…”

“…At present, the research on the operation scheduling of energy station to IES is mostly based on the fixed load demand of users. The regulating capacity of energy storage equipment is used to optimize the output of each equipment based on energy price in Reference , without considering the user interaction mechanism. A few studies consider the influence of user demand response in IES operation.…”

Smart Distribution Networks: A Review of Modern Distribution Concepts from a Planning Perspective

“…Major enabling technologies include ICT, ADA, DR, DSM, SG components and SMMT. Moreover, competitive environment and decision making are new research dimensions in new market models, particularly for DSM and DR providers in long-term market feasibility studies [65].…”

Electrical Market Management Considering Power System Constraints in Smart Distribution Grids

“…The participants need to be equipped with new electrical meters, control and monitoring systems, generation units, and communication systems. To analyze the feasibility of DSM, [37] proposes a market model with a new independent company called DR provider (DRP) to participate in long-term power market by providing price-based DR resources. The proposed long-term market model formulates DSM investments and its profit as a constrained dynamic multi-period optimization problem and solves it with a genetic algorithm.…”