A Coordinated Performance of Power System Operated with Participants in Demand Response Programs Considering Environmental Pollution Constraints

Abstract

In a re-structured environment, demand response (DR) programs are presented in a new style. The demand response program consists of demand-side management methods which answers to electricity price variations. With advent of electricity markets, the demand-side management programs was introduced into two categories: (1) energy efficiency program, (2) demand response program. This paper studies engagement of participants load in an electricity market having a grid with large and small loads interested to participate in the market, energy storage systems, micro-grids, and distributed generations. In the proposed scheme, it is supposed to have an aggregator which sends demand-side preferences including load curtailment, load shifting, onsite generation, and energy storage systems along with proposed value and prices and all respective system constraints to the independent system operator (ISO). In fact, load aggregators submit aggregated DR offers to the ISO in order to optimize final decisions on aggregators’ DR contributions in wholesale market. The main goal of this paper is to solve the operation problem considering demand-side, system, and pollution and reliability constraints. Compared to other methods, the results indicate that the explicit modeling of customer DR would provide ISOs with more flexible options for scheduling the available energy resources in day-ahead energy markets.