Designing Multistep Peak Time Rebate Programs for Curtailment Service Providers

摘要

Demand response is an effective solution to reduce the system operating cost and improve system reliability. However, the demand response potential of residential customers has not been fully utilized. To better exploit this potential, we propose a multistep peak time rebate program that is beneficial to both the program provider and the customer. To bring more resources into the market, we consider the curtailment service provider model under which the third-party entities are authorized for reduction aggregation and market participation. To verify the efficacy of this program, we develop a bi-level optimization model for the program providers. We propose an innovative model to capture the customer's probabilistic reduction for the lower-level problem. For the upper-level problem, a two-stage stochastic program is set up to identify the program provider's bidding strategy. The simulation results uphold the superiority of the multistep peak time rebate program to the program provider. Furthermore, we find out that the reduction deviation penalty affects the optimal bidding strategy and the efficacy of the innovative program. The result sheds light on the directions in designing effective programs and how the third-party entities may evolve in the near future.