Multi-stage coupon incentive-based demand response in two-settlement electricity markets

This paper extends our recent work and proposes a multi-stage coupon incentive-based demand response (M-CIDR) in two-settlement electricity markets. In contrast to the realtime pricing (RTP) or critical peak pricing (CPP) demand response programs, M-CIDR continues to offer a flat rate to retail customers and additional voluntary incentives to induce demand response. Compared with single-stage CIDR, a unit commitment model is employed so that the inter-temporal constraints can be considered conveniently. Theoretical analysis shows the benefits of the proposed scheme in two-settlement electricity markets. And numerical illustration is performed in the IEEE 30 bus system. The results show that during the periods with price spikes, the proposed M-CIDR can effectively induce demand response, reduce market clearing prices, obtain a social welfare which is close to that in the RTP scheme.