Using responsive loads as a tool for congestion management and system loss reduction

The main objective of the electricity market players is to maximize their profits. In this environment, maintaining reliability of power systems as one of the tasks of independent system operators (ISO) is of paramount importance; the ISO should ensure that necessary resources are available to maintain system security and reliability. As one of these resources, responsive loads can be used by the ISO to improve social welfare, to relief congestion and to maintain acceptable voltage levels across the system congestion. This paper suggests a method to clear intraday market which utilizes load bids as well as generators offers. In the selection process, the contribution of each load on system losses and congestion is considered while trying to minimize payment for these loads. The proposed method is implemented on a 5-bus system, and the IEEE 14-bus test system. The results have been compared to the ones obtained from other methods and show a relative improvement in system total losses and line loadings.