A day-ahead power spot market clearing model considering incentive-based demand response

Abstract

It is a gradual evolution path and the most common practice in the initial stage of power spot market construction in China to start with bidding without price on the demand side, which lead to a question of how to solve the demand respond (DR) in day-ahead power spot market. To this end, a day-ahead power market clearing model considering incentive-based demand response (IBDR) is proposed. The IBDR is mainly aimed at large users with certain load elasticity, which can adjust their production schedules and change their electricity load curve to obtain certain cost incentives. This clearing method can optimize the spot market clearing result to maximize the social benefit by coordinating the electricity purchase cost and DR incentive cost. In this process, large users can obtain certain economic compensation by providing DR and help the dispatching mechanism to solve the operation problems such as power grid congestion, which could improve the operation efficiency of thermal power units. Finally, a case study based on the IEEE-30 buses system is used to verify the effectiveness of the proposed method.