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Optimal allocation of demand response considering transmission system congestion

Author

Listed:
  • Vinicius Neves Motta

    (Polytechnique Montreal)

  • Miguel F. Anjos

    (University of Edinburgh)

  • Michel Gendreau

    (Polytechnique Montreal)

Abstract

The increasing penetration of renewable energy sources in the electricity grid brings new operational challenges. This brings up the need for effective means to provide demand response in spite of its distributed nature throughout the grid. Aggregators can be created to manage a set of such demand response resources, but deciding how to allocate an aggregator’s resources is an important problem. One of the aspects that needs more attention is the impact of the transmission system on these decisions. In this paper, we propose a short-term optimization model for allocating demand response(DR) resources as well as generation resources to supply external demand that is offered after the scheduling decision is made. The DR resources will only be available for use after the scheduling decision is made. Finally, our work also considers the impact of congestion in the transmission system when allocating DR. We propose the use of a semidefinite relaxation to provide a good initial point to solve our model with the aim of guaranteeing that we will find an optimal solution. Results from numerical tests with the IEEE 96-RTS and the ACTIVSG500 test grids are reported. We found that DR resources mitigates congestion management, allowing the generators to supply more of the external demand that is offered. Besides that, we observe that using our proposed solution methodology, we were able to obtain optimal solution for both cases studies, which is not the case when solving the original formulation for the ACTIVSG500 grid.

Suggested Citation

  • Vinicius Neves Motta & Miguel F. Anjos & Michel Gendreau, 2023. "Optimal allocation of demand response considering transmission system congestion," Computational Management Science, Springer, vol. 20(1), pages 1-22, December.
    • Handle: RePEc:spr:comgts:v:20:y:2023:i:1:d:10.1007_s10287-023-00456-0
    DOI: 10.1007/s10287-023-00456-0
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    References listed on IDEAS

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    1. Gilbert, François & Anjos, Miguel F. & Marcotte, Patrice & Savard, Gilles, 2015. "Optimal design of bilateral contracts for energy procurement," European Journal of Operational Research, Elsevier, vol. 246(2), pages 641-650.
    2. K. Selvakumar & K. Vijayakumar & C. S. Boopathi, 2017. "Demand Response Unit Commitment Problem Solution for Maximizing Generating Companies’ Profit," Energies, MDPI, vol. 10(10), pages 1-18, September.
    3. Clay Campaigne & Shmuel S. Oren, 2016. "Firming renewable power with demand response: an end-to-end aggregator business model," Journal of Regulatory Economics, Springer, vol. 50(1), pages 1-37, August.
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