TY - GEN
T1 - An incentive compatible market mechanism for integrating demand response into power systems
AU - Xu, Ce
AU - Khazaei, Hossein
AU - Zhao, Yue
N1 - Publisher Copyright:
© 2020 IEEE.
PY - 2020/11/11
Y1 - 2020/11/11
N2 - In this paper, we propose a market mechanism that allows demand response providers (DRPs) to participate in a two-settlement electricity market as power suppliers alongside conventional generators. Each DRP bids her demand reduction capacity and cost rate, and the independent system operator (ISO) schedules the power dispatch to minimize the overall system cost. We show that, with the proposed mechanism, truthful bidding by the DRPs is achieved at a Nash equilibrium (NE), and as a result, the social welfare is maximized. The theoretical results are corroborated by simulation studies.
AB - In this paper, we propose a market mechanism that allows demand response providers (DRPs) to participate in a two-settlement electricity market as power suppliers alongside conventional generators. Each DRP bids her demand reduction capacity and cost rate, and the independent system operator (ISO) schedules the power dispatch to minimize the overall system cost. We show that, with the proposed mechanism, truthful bidding by the DRPs is achieved at a Nash equilibrium (NE), and as a result, the social welfare is maximized. The theoretical results are corroborated by simulation studies.
UR - https://www.scopus.com/pages/publications/85099442981
U2 - 10.1109/SmartGridComm47815.2020.9302965
DO - 10.1109/SmartGridComm47815.2020.9302965
M3 - Conference contribution
AN - SCOPUS:85099442981
T3 - 2020 IEEE International Conference on Communications, Control, and Computing Technologies for Smart Grids, SmartGridComm 2020
BT - 2020 IEEE International Conference on Communications, Control, and Computing Technologies for Smart Grids, SmartGridComm 2020
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 2020 IEEE International Conference on Communications, Control, and Computing Technologies for Smart Grids, SmartGridComm 2020
Y2 - 11 November 2020 through 13 November 2020
ER -