Demand response participation in wholesale energy markets

This paper summarizes a presentation to be given at the IEEE Power and Energy Society 2012 General Meeting, in the panel session “Demand response: analytics, practice, and challenges in smart grid environment”. The paper elaborates participation of demand response (DR) resources in electricity markets. Specially, different types of DR participation in the wholesale energy markets are discussed. Then, two DR program designs are presented which aim to enable customers' participation in day-ahead energy markets. The paper continues with presenting the modified structure of the day-ahead energy market in presence of the DR programs. The offer packages specifically designed for DR participation in the market are introduced, and the market clearing problems including DR programs are presented and discussed. In the last section, the paper outlines different benefits of DR participation in energy markets.