Bi-level Demand Response Scheme in the Presence of Aggregators with Thermally Responsive Loads

Demand response (DR) program is a cost-effective way to improve operation efficiency of distribution networks. Load aggregator (LA), as new market participant, has played active role in demand side management for pursuing profit. In this paper, we introduce a bi-level DR scheme for distribution network operating with a set of thermal LAs which group the distributed responsive end-users for win-win operation. The goal of the upper level is to optimize the revenue of utility operation. This model also ensures that thermal LAs are paid according to their contributions to economic improvements of distribution network. At lower level, LAs make optimal decision for dispatching the included thermal loads, while the latter decides whether accept the power shaving request for monetary subsidy by compromising the comfort experience. The simulation analysis indicate that the proposed bi-level DR scheme is able to fully leverage the responsive capability of thermal loads to enable distributed demand response. Meanwhile, the benefits of market stakeholders can be well balanced by providing them the flexible choices.