Abstract
It has been widely accepted that demand response will play an important
role in reliable and economic operation of future power systems and
electricity markets. Demand response can not only influence the prices
in the energy market by demand shifting, but also participate in the
reserve market. In this paper, we propose a full model of demand response
in which demand flexibility is fully utilized by price responsive
shiftable demand bids in energy market as well as spinning reserve bids in reserve market. A
co-optimized day-ahead energy and spinning reserve market is proposed
to minimize the expected net cost under all credible system states,
i.e., expected total cost of operation minus total benefit of demand,
and solved by mixed integer linear programming. Numerical simulation
results on the IEEE Reliability Test System show effectiveness of
this model. Compared to conventional demand shifting bids, the proposed
full demand response model can further reduce committed capacity from
generators, starting up and shutting down of units and the overall
system operating costs.
