On the network economic, technical and reliability characteristics improvement through demand‐response implementation considering consumers’ behaviour

Abstract

Demand response (DR) is one of the fundamental components of deregulated power systems which face uncertainty because of unpredictable network component contingencies. In this study, a security-constrained model is proposed to coordinate supply and demand sides in a proper way toward a flexible, secure and economic grid. In the proposed model, generation units are committed to enhance the flexibility by providing up- and down-spinning reserves while an optimal real-time pricing scheme provides demand-side flexibility. Real-time pricing is developed by utilising consumers' behaviour. Different levels of rationality are given by extending demand-price elasticity matrices for different types of consumers. The proposed method can assist independent system operators to schedule generating units a day-ahead in a more reliable manner. Customers also can make the most beneficial plans by joining DR programmes and schedule their consumption optimally according to defined rates in the case of an emergency. The applicability of the proposed model is tested on the IEEE 24-bus reliability test system and its effects on operation cost, technical data of the network and the expected load not served are discussed.