Demand Response Based Model for Optimal Decision Making for Distribution Networks

In this paper, a heuristic mathematical model for optimal decision-making of a Distribution Company (DisCo) is proposed that employs demand response (DR) programs in order to participate in a day-ahead market, taking into account elastic and inelastic load models. The proposed model is an extended responsive load modeling that is based on price elasticity and customers’ incentives in which they participate in demand response program, voluntarily and would be paid according to their declared load curtailment amounts. It is supposed that DisCo has the ability to trade with the wholesale market and it can also use its own distributed generation (DG), while decision making process. In this regard, at first, DisCo’s optimization frameworks in two cases, with and without elastic load modelings are acquired. Subsequently, utilizing Hessian matrix and mathematical optimality conditions, optimal aggregated load curtailment amounts are obtained and accordingly, individual customer’s load reductions are calculated. Furthermore, effects of DG contributions and wholesale electricity market are investigated. An IEEE 18 bus test system is employed to obtain the results and show the accuracy of the proposed model.