Abstract
In the initial stage of electricity market construction, incentive-based demand response can effectively mitigate price spikes. Considering the overall equilibria of the market, it is of great significance to study the impact of incentive-based demand response on market clearing and participants’ behaviours. Firstly, this paper analyzes the compensation methods of incentive- based demand response and establishes an equilibrium model of day-ahead electricity market bidding that takes into account demand response. Secondly, considering the overall equilibrium conditions of the market, the overall equilibrium model of the market is established. Results show that the incentive-based demand response mechanism has a restraining effect on the generators’ bidding, and the load reduction effect is prominent when the network is congested.
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