Optimal Dynamic Tariffs for Flexible Ramp Market in the Presence of Wind Power Generation and Demand Response

The uncertainty and variability as a consequence of modern utilization of wind power in the electrical system besides unpredicted contingencies of the system components can impose crucial challenges on the Independent System Operator's (ISO) performance. In such a situation, increasing operational flexibility is the main way to cover wind power unpredictability and to enable secure operation of the power system. To this end, this paper proposes a flexible security-constrained program to schedule supply-side and demand-side via an optimal pricing and incentive scheme. The considered demand response (DR) programs include time of use (TOU), real-time pricing (RTP), critical peak pricing (CPP), as well as emergency demand response program (EDRP). The study aims to find the most effective DR scheme among a set of DR programs to improve the efficiency of electricity markets while guaranteeing the security and environmental restrictions through minimization of two objective functions, the ISO's operational cost and pollutant emissions from generation units.