Incentive Based Demand Response Program for Power System Flexibility Enhancement

This article proposes a DR program characterized by novel compensation scheme. The proposed scheme recognizes the different characteristics of curtailment, such as total length curtailments within window time, or number separate curtailment events (i.e., startup), and compensates end-user accordingly. features piece-wise reward function comprised two intervals. participants receive onetime upfront when they enroll in accept set predefined aspects. Curtailment aspects excess agreed quantities are rewarded at linear rate. design is tailored to appeal residential participants, aims secure sufficient flexibility minimum cost. parameters smart contract optimized that system's social welfare maximized. optimization problem modeled mixed-integer program. Consequently, this updates unit-commitment (UC) formulation with commitment units. extension UC considers critical participation, as: interruptions window, frequency time-window irrespective their length, net energy deviation from original load profile. Deployment unit dispatch requires translating participants' equivalent conventional thermal generators, up down-time, start-up shutdown costs. obtained results demonstrate significant improvement welfare, notable reduction curtailed renewable extreme ramping generators.