M. de Groot

Walrasian Market Clearing for Demand Response Exchange

This paper presents the design and evaluation of an effective market-clearing scheme for trading demand response (DR) in a deregulated power system. The proposed scheme is called demand response exchange (DRX), in which DR is treated as a public good to be exchanged between two groups of participating agents, namely DR buyers and DR sellers. While buyers require DR and are willing to pay for it, sellers have the capacity to curtail customer loads to supply DR on request. The DRX market clearing scheme uses Walrasian auctions, where agents update their DR quantity bids in response to prices adjusted by the market operator. This auction is repeated iteratively until market equilibrium is obtained at the point where the market outcome is proven to be Pareto optimal. The proposed scheme is tested on a small power system and its effectiveness substantiated.

Novel business models for Demand Response Exchange

In a restructured power system, there are many players who benefit from Demand Response (DR). These include the Market Operator (MO), the Transmission System Operator (TSO), Distributors, Retailers, Aggregators, and also consumers. This paper proposes a new concept - Demand Response eXchange (DRX) - in which DR is treated as a virtual resource that can be exchanged between two groups of players, namely the DR user group and the DR supplier group. Players within the DR user group, including the MO, the TSO, Distributors and Retailers, are the ones who need DR to improve the reliability of their related business and systems. Players within the DR supplier group, including Aggregators and consumers, are the ones capable of negotiating DR with the users. The paper suggests that there are two alternative types of business models for DRX, namely bilateral and pool-based. In the bilateral model, DR users and DR suppliers independently arrange the exchange of DR with no participation by a system operator. In the pool-based model, DR exchange between suppliers and users is facilitated and settled by a new system operator named DRX Operator (DRXO). The paper then focuses on investigating the feasibility of the pool-based model versus the bilateral model with regard to power system restructuring.

Fast demand response as an enabling technology for high renewable energy penetration in isolated power systems

Isolated power systems (IPSs) up to 20MW capacity are often based on diesel generators. Due to the high cost of diesel fuel supply, as well as environmental concerns, IPSs should ideally include a large proportion of renewable energy generation. We report on the implementation of a simple, finegrained and fast demand response (DR) technology to enable high wind penetration in an IPS. This solution is based on centralized two-way communication and control of residential and commercial loads. DR can be dispatched and confirmed within 1 second. The technology has been installed and successfully tested in an IPS on an island in Australia.

A new and separated market for demand response in restructured power systems

This paper introduces a new and separated market for the trading of Demand Response (DR) in a restructured power system. This market is called Demand Response eXchange or shortly DRX, in which DR is treated as a virtual resource to be exchanged between DR buyers and sellers. Buyers — including the Transmission System Operator (TSO), distributors, and retailers — need DR to improve the efficiency and reliability of their own businesses and systems. Sellers — including consumers though an aggregator — negotiate DR with those buyers. The DRX is modeled in the form of a pool-based market using microeconomic theory. In this market, a DRX Operator (DRXO) collects bids and offers from DR buyers and sellers respectively. It then clears the market by maximizing the total market benefit subject to certain operational constraints. The DRX model is also tested on a small power system in comparison to conventional DR approaches, and its advantages are reported.

An agent-based market-clearing scheme for the exchange of Demand Response

It is widely agreed that Demand Response (DR), in the form of load curtailments in power systems, not only improve the system reliability but also the market efficiency through the mitigation of spot price volatility. This panel paper introduces a novel agent-based market-clearing scheme for fairly distributing the benefits of such DRs on various categories of market participants (as agents). The proposed scheme is called Demand Response eXchange (DRX), in which DR is treated as a virtual resource to be exchanged between two groups of participating agents, namely DR buyers and sellers. While buyers demand DR and are willing to pay for it, sellers have the capability to curtail customer loads to supply this DR on request. Core concepts and are developed in this paper.

Short-term valuation of demand response

This paper proposes a novel assessment framework for estimating short-term financial benefits of demand response (DR) to be delivered to a deregulated power system. First, the framework analyzes DR costs and benefits for participants in a DR market, and for generators and retailers in the electricity trading market. Based on these local analyses, a global evaluation is performed to determine whether the optimized DR can produce a positive social surplus. If so, the DR will be dispatched during the time period under consideration. Case study is given on the Roy Billinton test system (RBTS) to show the usefulness of the proposed assessment framework and to examine its scalability.