Abstract: This paper presents a new methodology to security-constrained unit commitment (SCUC) problem with demand response resource (DRR) which is regarded as virtual power plant (VPP). In this paper, based on DRR bids information submitted to Korea Power Exchange (KPX), price elasticity and peak load are calculated and DRR cost function is obtained. The scheduling includes generator characteristics, DRR and reliability constraints Cost functions for generator and DRR are modeled as a piecewise linear function and an Mixed Integer Linear Programming (MILP) based method is applied to solve the optimization problem. Proposed methodology is tested and validated on The IEEE RTS-24 system. Through numerical simulation, DRR has demonstrated the decrease in the total operation cost as well as the curtailment of peak load.
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