Extended-time demand bids: A new bidding framework to accommodate time-shiftable loads

Time-shiftable loads play an important role in creating load flexibility and enhancing demand response and peak-load shaving programs. However, recent studies have suggested that time-shiftable loads may face load synchronization and market instability if they are deployed at high penetrations such that they become price maker. To tackle this problem, in this paper, we propose a new demand bidding framework that recognizes the special characteristics of time-shiftable loads. The bids in this new bidding framework are called extended-time demand bids. They are either extended-time self-schedule bids or extended-time economic bids. The bidding concept, its visualization, and its mathematical representation are presented. Using the bids data in the California energy market, we show that the new bidding structure is beneficial not only to the power system as a whole but also to the consumers that are capable of shifting a portion of their loads. The new bidding structure also increases the market competitiveness due to expanding the competition domain and increasing demand elasticity with temporal dependencies.