Abstract
Demand response (DR) is an effective solution used to maintain the reliability of power systems. Although numerous demand bidding models were designed to balance the demand and supply of electricity, these works focused on optimizing the DR supply curve of aggregator and the associated clearing prices. Limited researches were done to investigate the interaction between each aggregator and its customers to ensure the delivery of promised load curtailments. In this paper, a closed demand bidding model is envisioned to bridge the aforementioned gap by facilitating the internal DR trading between the aggregator and its large contract customers. The customers can submit their own bid as a pairs of bidding price and quantity of load curtailment in hourly basis when demand bidding is needed. A purchase optimization scheme is then designed to minimize the total bidding purchase cost. Given the presence of various load curtailment constraints, the demand bidding model considered is highly nonlinear. A modified genetic algorithm incorporated with efficient encoding scheme and adaptive bid declination strategy is therefore proposed to solve this problem effectively. Extensive simulation shows that the proposed purchase optimization scheme can minimize the total cost of demand bidding and it is computationally feasible for real applications.
Highlights
The electricity market is evolving towards an open-access environment by restructuring the vertically integrated utilities into multiple independent market players including: generator, transmission system operator (TSO), distributor, retailer and aggregator
Numerous market clearing strategies were proposed in [16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32] to address the demand bidding optimization problems, majority of these studies emphasized at the upper level that involves interaction between the aggregators and different entities of electricity market (e.g., TSO, distributor and retailer) in order to determine the optimal combination of quantity and clearing price of load curtailment
A closed demand bidding model is considered in this paper to facilitate the internal trading of modified genetic algorithm (MGA) is different in every bidding slot and at least 20% lower than the average bidding prices offered by the customers
Summary
The electricity market is evolving towards an open-access environment by restructuring the vertically integrated utilities into multiple independent market players including: generator, transmission system operator (TSO), distributor, retailer and aggregator. Numerous market clearing strategies were proposed in [16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32] to address the demand bidding optimization problems, majority of these studies emphasized at the upper level that involves interaction between the aggregators and different entities of electricity market (e.g., TSO, distributor and retailer) in order to determine the optimal combination of quantity and clearing price of load curtailment.
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