A new measure to evaluate demand response effectiveness and its optimization

摘要

Demand Response (DR) effectiveness is studied by assessing its effect on the energy market clearing price (EMCP). However, with DR, the problem needs to be constructed differently because the EMCP is no longer: (1) the price of the next available unit of electricity; or (2) the price paid by all loads.The conventional calculation of EMCP was designed for a single commodity - energy - but now there are two commodities - energy and DR - being procured simultaneously.Therefore, with DR, EMCP needs to be updated. We introduce the new concept of Actual Price, which reflects the price of the next available unit of electricity or the price paid by all loads when DR is used in addition to generation to meet demand. This is the first contribution in this paper.To circumvent this issue, the Federal Energy Regulatory Commission instituted the Net Benefit Test (NBT) under Order 745 precisely because the EMCP was not calculated accurately. The NBT mandates that benefits to the remaining consumers must equal or exceed the purchase cost of DR services. However, NBT does not ensure that Actual Price is minimized Therefore, as a second contribution, we propose a new two-stage optimal power flow (OPF) method, wherein the first stage determines optimal quantum of DR services that minimizes Actual Price and the second stage completes an OPF considering the optimal quantum of DR services. This method is applied to PJM generator bid offer data to demonstrate it delivers the best outcome for remaining consumers.