Integrating Demand Response Aggregators with Negawatt Trading Mechanisms in Electricity Markets

In this paper, we propose a distributed power supply-demand management mechanism in a real-time market by utilizing various resources including demand reduction, balancing generators, and power flow changes. The proposed method aims to minimize the cost of balancing the supply with the demand. We simulate the results on the IEEJ EAST 30-machine system with four connected areas. The results show the feasibility of the proposed method and the establishment of a relationship between the demand response (DR) aggregator and the independent system operator (ISO).