Abstract
The utilization of aggregated demand-side flexibility via demand response (DR) has become a promising pathway for the integration of renewable energy resources in power systems. Nowadays, there are several management strategies for DR such as the price-based transactive control strategies. However, many of such existing price-based control strategies neglect the physics and operational constraints of the underlying distribution networks when computing the price, raising concerns regarding their theoretical and practical values. This paper studies this issue and investigates optimal DR (ODR) by incorporating the distribution locational marginal price (DLMP). In particular, we discuss DR in connection with DLMPs and propose a multiperiod bilevel optimization problem to find the ODR strategy. The objective is to minimize the peak load, load fluctuation, and payments of load aggregators. In addition, a robust bilevel ODR model is formulated to provide a robust ODR strategy while minimizing operating costs under the worst-case realization of uncertainties; this mitigates the impact of forecasting errors on renewable energy resources. Then, we propose an efficient solution approach by employing the KarushKuhnTucker conditions and strong duality. Simulation results are presented to illustrate the mutual impacts of the interaction between DR and DLMP and the benefits of the robust ODR strategy.
