Demand response model and impact studies based on bidirectional interactive of information and electrical energy

At present, extensive researches have been conducted on implementation of demand response programs, aimed to electricity price reduction, transmission lines congestion resolving, security enhancement, improvement of market liquidity, manage peak demand by applying price signals and automated load shedding technologies, etc. Firstly this paper presents a summary of Demand Response (DR) in deregulated electricity markets. The definition and the classification of DR as well as potential benefits and associated cost components are presented. In addition, by using the concept of price elasticity matrices of demand and customer benefit function, reduce price volatility during peak demand hours, economic model of demand response programs is developed. Analysis results with the actual case indicate that proposed model helps the independent system operator to identify and employ relevant DR program which both improves the characteristics of the load curve and also be well-come by customers. Most important is to achieve the purpose of cutting the peak and filling the valley.