Modeling and prioritizing dynamic demand response programs in the electricity markets

Abstract Integration of demand and supply-side resources has been performed by electric utilities to benefit their potential attractiveness in both economic and operation levels. The Demand Response Resources (DRRs) can be considered as one of the most important demand side options which have been developed as an aftermath of DRPs implementation. In this paper, based on benefit function concept of customers and flexible demand elasticity, a dynamic economic model of DRPs as a combination of EDRP and TOU programs is developed. Different alternatives of DRPs are developed in which the independent system operator can choose the optimal DRP which reflects its perspectives. To do so, the Multi Attribute Decision Making (MADM) is employed as an effective method. In addition, entropy methods and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) are utilized to prioritize various developed DRPs. To cover all operating conditions, the numerical studies are provided on a standard IEEE ten-unit test system taking from both “load profile characteristics” and “economical” points of view into account and considering different indices as peak to valley distance, peak reduction, etc. Based on obtained results, the developed model can be utilized to improve satisfaction of customers and the load profile characteristics.