Determination of consumer satisfaction level in double-sided power market: An analytical decomposition approach

Abstract

Abstract Power system restructuring along with smart grid infrastructure provides an opportunity for demand side to participate in the energy market. Demand-side participation creates sufficient price-elastic loads (PELs), which provide many benefits for Load Serving Entities (LSEs) and system operators. If more PEL is supplied, it will be more acceptable for the LSE. Thus, the ratio of dispatched PEL to its available capacity, which is defined as the Consumer Satisfaction Index (CSI), is of paramount importance. In this paper, an analytical approach is presented to evaluate the sensitivity of CSI to its structural factors. To achieve this purpose, a double-sided power market is formulated to maximize social welfare. This optimization problem is solved by Lagrangian function and Karush Kuhn Tucker conditions. We propose a Lemma and a corollary to decompose the Nodal-CSI and Total-CSI into seven structural factors. These factors include supply (bid, minimum and maximum capacities), demand (LSE offer, PEL capacity and fixed load) and congested lines. The Nodal-CSIs participation coefficients extracted by structural decomposition can provide deeper insights. For example, the effect of LSE and generation bidding strategy on CSI can be determined using the LSE offer and unit bidding, respectively. Moreover, the operator can identify the impact of each congested lines on dispatched PELs to prioritize congestion management programs. To illustrate the efficiency of the proposed methodology, IEEE 24-bus modified reliability test system (MRTS) has been employed.