Designing time-of-use program based on stochastic security constrained unit commitment considering reliability index

Recently in electricity markets, a massive focus has been made on setting up opportunities for participating demand side. Such opportunities, also known as demand response (DR) options, are triggered by either a grid reliability problem or high electricity prices. Two important challenges that marke...

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Published in:Energy (Oxford) Vol. 41; no. 1; pp. 541 - 548
Main Authors: Nikzad, Mehdi, Mozafari, Babak, Bashirvand, Mahdi, Solaymani, Soodabeh, Ranjbar, Ali Mohamad
Format: Journal Article
Language:English
Published: Kidlington Elsevier Ltd 01.05.2012
Elsevier
Subjects:
Applied sciences
Demand response
electricity
electricity costs
Energy
Exact sciences and technology
Expected load not supplied index
linear programming
markets
Mixed-integer linear programming
prices
stochastic processes
Stochastic security constrained unit commitment
Time-of-use rates
Expected load not supplied index
Demand response
Stochastic security constrained unit commitment
Time-of-use rates
Mixed-integer linear programming
ISSN:0360-5442
Online Access:Get full text
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Summary:Recently in electricity markets, a massive focus has been made on setting up opportunities for participating demand side. Such opportunities, also known as demand response (DR) options, are triggered by either a grid reliability problem or high electricity prices. Two important challenges that market operators are facing are appropriate designing and reasonable pricing of DR options. In this paper, time-of-use program (TOU) as a prevalent time-varying program is modeled linearly based on own and cross elasticity definition. In order to decide on TOU rates, a stochastic model is proposed in which the optimum TOU rates are determined based on grid reliability index set by the operator. Expected Load Not Supplied (ELNS) is used to evaluate reliability of the power system in each hour. The proposed stochastic model is formulated as a two-stage stochastic mixed-integer linear programming (SMILP) problem and solved using CPLEX solver. The validity of the method is tested over the IEEE 24-bus test system. In this regard, the impact of the proposed pricing method on system load profile; operational costs and required capacity of up- and down-spinning reserve as well as improvement of load factor is demonstrated. Also the sensitivity of the results to elasticity coefficients is investigated. ► Time-of-use demand response program is linearly modeled. ► A stochastic model is proposed to determine the optimum TOU rates based on ELNS index set by the operator. ► The model is formulated as a short-term two-stage stochastic mixed-integer linear programming problem.
Bibliography:http://dx.doi.org/10.1016/j.energy.2012.02.015
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ISSN:0360-5442
DOI:10.1016/j.energy.2012.02.015