Dispatch of generation and demand side response in regional grids

Demand response (DR) is now recognized by utilities as an effective way to increase operating reserves and improve network congestion. To enhance system operation flexibility, a novel model of generation dispatch in regional grids with integrated demand side response is proposed. In the optimal power problem, the semi-definite programming method is used to find the global optimal value. The concept of the dissatisfaction degree for customers and the utility is introduced into the problem formulation to determine a proper compensation to be paid to customers participating in DR. The test results of an IEEE test system are presented to verify the performance of the proposed method as well as to demonstrate the benefit of incorporating demand response into generation dispatch.