A day-ahead scheduling strategy of incentive demand response under retail power market deregulation

Demand response(DR) utilizes the resources of demand side as an alternative of power supply, it has gained more and more application in the open power market. Firstly this paper analyzes the position of power retailers in the electricity market, and the concept of demand side aggregator was proposed. The model of incentive demand side was built. Compared with the conventional power plant(CPP), the demand response aggregator cost model is established. Considering the optional constraints of DR, the system scheduling model is established including demand response aggregator, power retailers and traditional generators to maximize the efficiency of a day-ahead scheduling strategy. Simulation results demonstrated that the demand response aggregator can replace part of the traditional power generation resources, reduce the operation cost, and reduce the wind and solar curtailment and avoid load shedding.