Effect of Reserve Supplying Demand Response with Payback Characteristics in Optimal Market Scheduling

M. Behrangrad, H. Sugihara, and T. Funaki (Japan)


Demand response, payback effect, spinning reserve, probabilistic market scheduling


In this paper the effect of reserve supplying demand response resources (RSDR), with emphasis on their payback characteristic is evaluated. According to the increasing share of DR resources that attend in the spinning reserve service of ancillary service market, the payback characteristics of this resource can affect the market scheduling and system indices. On the other hand the payback characteristic can affect the effectiveness and functionality of RSDR resource. In order to analyze it, a comprehensive market-scheduling framework with social cost minimization point of view is adopted. The objective function of the market scheduling is social cost minimization, and takes into account the energy, reserve, and expected interruption cost. Using the adopted market scheduling the effect of RSDR with payback characteristics and some effective parameters like load reliability requirement are analyzed in this paper. IEEE RTS 1996 test system with 32 units is utilized for numerical simulations. The numerical results show that the payback effect can affect the market-scheduling and effectiveness and functionality of RSDR resource.

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