Prioritizing the effectiveness of a comprehensive set of demand response programs on wind power integration

Abstract

The environmental targets set by power sectors throughout the world are the main drivers toward increasing the share of variable renewable energy sources (VRESs). Growth of VRESs will lead to a higher demand for operational flexibility due to their stochastic nature. Traditionally, conventional generation units provide the major share of additional required flexibility that may result in a higher depreciation. Motivated by this challenge, this paper investigates the potential of Demand Response (DR) as an emerging alternative in systems with significant amounts of wind power. To this end, a comprehensive set of DR programs including tariff-based, incentive-based and combinational DR programs are considered in a stochastic network-constrained market clearing framework. Afterwards, various DR programs are prioritized taking into account the system operator’s economic, technical, and environmental desires. Moreover, the sensitivity of different DR programs into customer’s price elasticity of demand as well as the participation level are evaluated by means of several sensitivity analyses. The obtained results can provide a guideline for the system operators to opt the most effective DR program.