IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v88y2011i9p3257-3269.html
   My bibliography  Save this article

Flexible demand response programs modeling in competitive electricity markets

Author

Listed:
  • Moghaddam, M. Parsa
  • Abdollahi, A.
  • Rashidinejad, M.

Abstract

In recent years, extensive researches have been conducted on implementation of demand response programs (DRPs), aimed to electricity price reduction, transmission lines congestion resolving, security enhancement and improvement of market liquidity. Basically, DRPs are divided into two main categories namely, incentive-based programs (IBPs) and time-based rate programs (TBRPs). Mathematical modeling of these programs helps regulators and market policy makers to evaluate the impact of price responsive loads on the market and system operational conditions. In this paper, an economic model of price/incentive responsive loads is derived based on the concept of flexible price elasticity of demand and customer benefit function. The mathematical model for flexible price elasticity of demand is presented to calculate each of the demand response (DR) program’s elasticity based on the electricity price before and after implementing DRPs. In the proposed model, a demand ratio parameter has been introduced to determine the appropriate values of incentive and penalty in IBPs according to the level of demand. Furthermore, the importance of determining optimum participation level of customers in different DRPs has been investigated. The proposed model together with the strategy success index (SSI) has been applied to provide an opportunity for major players of the market, i.e. independent system operator (ISO), utilities and customers to select their favorite programs that satisfy their desires. In order to evaluate the performance of the proposed model, numerical studies are conducted on the Iranian interconnected network load profile on the annual peak day of the year 2007.

Suggested Citation

  • Moghaddam, M. Parsa & Abdollahi, A. & Rashidinejad, M., 2011. "Flexible demand response programs modeling in competitive electricity markets," Applied Energy, Elsevier, vol. 88(9), pages 3257-3269.
    • Handle: RePEc:eee:appene:v:88:y:2011:i:9:p:3257-3269
    DOI: 10.1016/j.apenergy.2011.02.039
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261911001516
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2011.02.039?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Aalami, H.A. & Moghaddam, M. Parsa & Yousefi, G.R., 2010. "Demand response modeling considering Interruptible/Curtailable loads and capacity market programs," Applied Energy, Elsevier, vol. 87(1), pages 243-250, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yiqi Dong & Zuoji Dong, 2023. "Bibliometric Analysis of Game Theory on Energy and Natural Resource," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    2. Nwulu, Nnamdi I. & Xia, Xiaohua, 2015. "Implementing a model predictive control strategy on the dynamic economic emission dispatch problem with game theory based demand response programs," Energy, Elsevier, vol. 91(C), pages 404-419.
    3. Meyabadi, A. Fattahi & Deihimi, M.H., 2017. "A review of demand-side management: Reconsidering theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 367-379.
    4. Eissa, M.M., 2018. "First time real time incentive demand response program in smart grid with “i-Energy” management system with different resources," Applied Energy, Elsevier, vol. 212(C), pages 607-621.
    5. Abdul Conteh & Mohammed Elsayed Lotfy & Kiptoo Mark Kipngetich & Tomonobu Senjyu & Paras Mandal & Shantanu Chakraborty, 2019. "An Economic Analysis of Demand Side Management Considering Interruptible Load and Renewable Energy Integration: A Case Study of Freetown Sierra Leone," Sustainability, MDPI, vol. 11(10), pages 1-19, May.
    6. Jiao, P.H. & Chen, J.J. & Cai, X. & Wang, L.L. & Zhao, Y.L. & Zhang, X.H. & Chen, W.G., 2021. "Joint active and reactive for allocation of renewable energy and energy storage under uncertain coupling," Applied Energy, Elsevier, vol. 302(C).
    7. Ramin Nourollahi & Pouya Salyani & Kazem Zare & Behnam Mohammadi-Ivatloo & Zulkurnain Abdul-Malek, 2022. "Peak-Load Management of Distribution Network Using Conservation Voltage Reduction and Dynamic Thermal Rating," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    8. Zheng, Menglian & Meinrenken, Christoph J. & Lackner, Klaus S., 2014. "Agent-based model for electricity consumption and storage to evaluate economic viability of tariff arbitrage for residential sector demand response," Applied Energy, Elsevier, vol. 126(C), pages 297-306.
    9. Shafie-khah, M. & Kheradmand, M. & Javadi, S. & Azenha, M. & de Aguiar, J.L.B. & Castro-Gomes, J. & Siano, P. & Catalão, J.P.S., 2016. "Optimal behavior of responsive residential demand considering hybrid phase change materials," Applied Energy, Elsevier, vol. 163(C), pages 81-92.
    10. Dehnavi, Ehsan & Abdi, Hamdi, 2016. "Optimal pricing in time of use demand response by integrating with dynamic economic dispatch problem," Energy, Elsevier, vol. 109(C), pages 1086-1094.
    11. Neda Hajibandeh & Mehdi Ehsan & Soodabeh Soleymani & Miadreza Shafie-khah & João P. S. Catalão, 2017. "The Mutual Impact of Demand Response Programs and Renewable Energies: A Survey," Energies, MDPI, vol. 10(9), pages 1-18, September.
    12. Davarzani, Sima & Pisica, Ioana & Taylor, Gareth A. & Munisami, Kevin J., 2021. "Residential Demand Response Strategies and Applications in Active Distribution Network Management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    13. Nosratabadi, Seyyed Mostafa & Hooshmand, Rahmat-Allah & Gholipour, Eskandar, 2016. "Stochastic profit-based scheduling of industrial virtual power plant using the best demand response strategy," Applied Energy, Elsevier, vol. 164(C), pages 590-606.
    14. Xiao, Jingjie, 2013. "Grid integration and smart grid implementation of emerging technologies in electric power systems through approximate dynamic programming," MPRA Paper 58696, University Library of Munich, Germany.
    15. Shaukat, N. & Ali, S.M. & Mehmood, C.A. & Khan, B. & Jawad, M. & Farid, U. & Ullah, Z. & Anwar, S.M. & Majid, M., 2018. "A survey on consumers empowerment, communication technologies, and renewable generation penetration within Smart Grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1453-1475.
    16. Nikzad, Mehdi & Mozafari, Babak & Bashirvand, Mahdi & Solaymani, Soodabeh & Ranjbar, Ali Mohamad, 2012. "Designing time-of-use program based on stochastic security constrained unit commitment considering reliability index," Energy, Elsevier, vol. 41(1), pages 541-548.
    17. Behrangrad, Mahdi & Sugihara, Hideharu & Funaki, Tsuyoshi, 2011. "Effect of optimal spinning reserve requirement on system pollution emission considering reserve supplying demand response in the electricity market," Applied Energy, Elsevier, vol. 88(7), pages 2548-2558, July.
    18. Botelho, D.F. & de Oliveira, L.W. & Dias, B.H. & Soares, T.A. & Moraes, C.A., 2022. "Prosumer integration into the Brazilian energy sector: An overview of innovative business models and regulatory challenges," Energy Policy, Elsevier, vol. 161(C).
    19. Tahir, Muhammad Faizan & Chen, Haoyong & Khan, Asad & Javed, Muhammad Sufyan & Cheema, Khalid Mehmood & Laraik, Noman Ali, 2020. "Significance of demand response in light of current pilot projects in China and devising a problem solution for future advancements," Technology in Society, Elsevier, vol. 63(C).
    20. Paulus, Moritz & Borggrefe, Frieder, 2011. "The potential of demand-side management in energy-intensive industries for electricity markets in Germany," Applied Energy, Elsevier, vol. 88(2), pages 432-441, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:88:y:2011:i:9:p:3257-3269. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.