Large Consumer Electricity Acquisition Considering Time-of-Use Rates Demand Response Programs

Research paper by Sayyad Nojavan, Hadi Qesmati, Kazem Zare, Heresh Seyyedi

Indexed on: 06 Nov '14Published on: 06 Nov '14Published in: Arabian Journal for Science and Engineering


The consumers try to obtain their electricity demand at minimum cost from different resources in restructured electricity markets. Hence more attention have been made on demand response programs (DRP) which aims to electricity price reduction, transmission lines congestion solution, security intensification and improvement of market liquidity and customer load benefit. This paper develops a stochastic energy procurement model for large consumer with multiple options including distributed generations, bilateral contracts and pool market purchase considering DRP. Pool market price uncertainty is modeled based on scenario distribution curve approach such as normal distribution curve. The curve is divided into several areas, each area identified as a scenario, and the problem is solved using stochastic programming. Also, this paper is focused to study the effect of DRP on total expected procurement cost has been discussed in all scenarios. Actually a new stochastic framework using demand response program is presented for large consumer expected procurement cost reduction.