• Title, Summary, Keyword: Demand response(DR)

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Analysis of Cournot Model of Electricity Market with Demand Response (수요반응자원이 포함된 전력시장의 쿠르노 경쟁모형 해석)

  • Lee, Kwang-Ho
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.66 no.1
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    • pp.16-22
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    • 2017
  • In order to reduce costs of electricity energy at periods of peak demand, there has been an exponential interest in Demand Response (DR). This paper discusses the effect on the participants' behavior in response to DR. Under the assumption of perfect competition, the equilibrium point of the electricity market with DR is derived by modeling a DR curve, which is suitable for microeconomic analysis. Cournot model is used to analyze the electricity market of imperfect competition that includes strategic behavior of the generation companies. Strategic behavior with DR makes it harder to compute equilibrium point due to the non-differential function of payoff distribution. This paper presents a solution method for achieving the equilibrium point using the best response function of the strategic players. The effect of DR on the electricity market is illustrated using a test system.

A Study on Economic Demand Response NBT and Performance (우리나라 전력시장에서 경제성 DR의 NBT 및 낙찰 관계 분석)

  • Yang, Min Seung;Lee, Sung Moo
    • Current Photovoltaic Research
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    • v.5 no.3
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    • pp.100-104
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    • 2017
  • This paper analyzes the correlation between Net Benefit Test (NBT) and System marginal price (SMP), which has a significant impact on the allocation of demand response (DR) resources in resource scheduling and commitment (RSC) process, based on the performance data of the demand resource market which has been established in 2014. Demand resources compete with generation resources in the RSC process, and it is prescribed to use demand resources only when net benefit occurs. Analysis result shows that the larger the SMP than the Net Benefit Threshold Price (NBTP), the more the winning bid of demand response resource was. It is interpreted that the introduction of NBT in DR market is justified. The demand resource market has been steadily growing. It is required to expand the scope of resources up to the small-sized DR, and to expand the functionalities of demand resources not only in the current energy market but also in the reserve market in the future. In order for that, institutional improvements are required.

Social Welfare Analysis of Demand Response from the Viewpoint of Demand Function (수요함수 관점에서 해석한 수요반응의 사회적 후생 분석)

  • Lee, Kwang-Ho;Yang, Kwan-mo
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.66 no.1
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    • pp.23-26
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    • 2017
  • Social Welfare is useful concept for evaluating the effectiveness of an economic policy in micro economics. This paper focuses on Social Welfare(SW) of electricity market incorporating demand response(DR). Competition between DR and generation company is modeled as a simple bid function. DR function can be considered as an negative generation(called Negawatt) and as an element of modified demand function. These two approaches result in the same demand reduction, generation power, and the market price. However, SW in the modified demand function approach is not identical to SW in the Negawatt approach. It makes the numerical index of DR effectiveness less persuasive. This paper proposes modified definition of SW in the demand function approach. The proposed definition of SW leads the DR effectiveness index to be identical to that in the Negawatt approach.

Analysis on Demand Response Aggregator in Electricity Market (수요관리사업자가 수요반응 전력시장에 미치는 영향 분석)

  • Lee, Kwang-Ho
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.66 no.8
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    • pp.1181-1186
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    • 2017
  • The purpose of Demand Response is to reduce the cost of excessive resources and equipment by spontaneous load reductions at peak loads. Having enough power consumers participating in these schemes is key to achieving the goal. Demand Response Aggregator (DRA) is responsible for recruiting demand resources and managing them to participate in reducing the load. DRAs change the price elasticity of demand functions by providing incentives to demand response, thereby affecting price formation in the electricity market. In this paper, this process is modeled to analyze the relationship between DRA's strategic bidding and market outcomes and load reductions. It analyzes the results by applying to competition between DRAs, competition between DR and Gencos, and coexistence of DR load and non-DR load. It is noteworthy that we have found a phenomenon called the Balloon Effect.

Competition and Coalition of the Participants with Demand Response in Electricity Market

  • Lee, Kwang-Ho
    • Journal of Electrical Engineering and Technology
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    • v.12 no.6
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    • pp.2157-2165
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    • 2017
  • This study deals with the design of the mechanism in which demand response (DR) resources are traded in the power generation market. In general, a DR aggregator (DRA), which extends DR resources and provides technical support, is central to this mechanism. In this study, power users, called DR customer (DRC), participate in load reduction and are also modeled to participate directly in DR-related bidding. The DRA provides incentives to the DRC, indirectly impacting the market, and the DRC use the bid parameters strategically. We present the conditions for finding Nash Equilibrium (NE) in game problems of various participants including market operators, and analyze the characteristics of DRA and DRC related models. It also analyzes the impact of the participants on the market according to various types of competition and coalitions between DRA and DRC.

Risk-Based Allocation of Demand Response Resources Using Conditional Value-at Risk (CVaR) Assessment

  • Kim, Ji-Hui;Lee, Jaehee;Joo, Sung-Kwan
    • Journal of Electrical Engineering and Technology
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    • v.9 no.3
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    • pp.789-795
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    • 2014
  • In a demand response (DR) market run by independent system operators (ISOs), load aggregators are important market participants who aggregate small retail customers through various DR programs. A load aggregator can minimize the allocation cost by efficiently allocating its demand response resources (DRRs) considering retail customers' characteristics. However, the uncertain response behaviors of retail customers can influence the allocation strategy of its DRRs, increasing the economic risk of DRR allocation. This paper presents a risk-based DRR allocation method for the load aggregator that takes into account not only the physical characteristics of retail customers but also the risk due to the associated response uncertainties. In the paper, a conditional value-at-risk (CVaR) is applied to deal with the risk due to response uncertainties. Numerical results are presented to illustrate the effectiveness of the proposed method.

Demand Response Operation Considering Payback (Payback현상을 고려한 Demand Response 운영)

  • Lee, Ho-Chul;Yoon, Yong-Tae
    • Proceedings of the KIEE Conference
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    • pp.537_538
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    • 2009
  • 본 논문의 목적은 전력 소비자 입장에서 비용 최소화를 하는 DR(Demand Response)프로그램의 설계이다. 이는 DR자원을 입찰받는 환경에서 시장의 가격을 고려하여 DR자원의 투입량과 그 보상금을 결정하는 것에 초점을 맞추고 있다. 또한 수요 감축이 이루어진 후에 발생하는 수요증가현상(Payback)현상을 고려하였다. payback 현상을 고려하지 않고 DR프로그램을 설계할 경우 당장의 피크를 줄이기 위해 많은 DR자원 투입하는 경우가 있다. 이런 경우 당장의 피크는 없어지지만 추후의 증가하는 수요에 의해 제2의 피크가 발생하거나 비용이 증가하는 현상이 생긴다. 따라서 Payback은 DR프로그램을 실행하는데 있어서 반드시 고려되어야할 중요한 현상이다. 본 논문에서는 몇 가지 payback 모델을 바탕으로 소비자 입장에서 비용 최소화하는 DR프로그램을 구현하였다.

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Development of Demand Response Operation System for Load Aggregators (부하관리사업자용 수요반응 운영 시스템 개발)

  • Kim, Ji-Hui;Moon, Guk-Hyun;Joo, Sung-Kwan;Oh, Jae-Cheol
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.60 no.12
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    • pp.2221-2224
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    • 2011
  • During an emergency due to a shortage of power, a load aggregator (LA) can use the demand response operation system to deploy demand response resources (DRRs) through various demand response (DR) programs. This paper introduces the demand response operation system for a load aggregator to manage various demand response resources in a smart grid environment.

Shapley Value-Based Method for Calculating the Contribution of Retail Customers Participating in Demand Response Program (Shapley Value를 이용한 수요반응 프로그램 참여자의 전력 구매비용 절감 기여도 산정)

  • Kim, Ji-Hui;Wi, Young-Min;Joo, Sung-Kwan
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.58 no.12
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    • pp.2354-2358
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    • 2009
  • Demand response (DR) can be used to improve the efficiency of electricity markets and increase the reliability of power systems. As more utilities attempt to reduce the purchasing costs by implementing DR programs strategically, there is an increasing need for studies of how to allocate the reduced purchasing costs among DR program participants. The rebates or incentives can be given to DR program participants in proportion to the participants' contributions to the reduced purchasing costs. This paper presents Shapley Value-based method to determine the DR program participants' contributions to the reduced purchasing costs. A numerical example is presented to validate the effectiveness of the proposed method.

Role of Demand Response in Small Power Consumer Market and a Pilot Study (소규모 전력 소비자 대상 수요자원 거래시장의 필요성 및 시범운영 결과 분석)

  • Lee, Eun-jung;Lee, Kyung-eun;Lee, Hye-su;Lee, Hyo-seop;Kim, Eun-cheol;Rhee, Wonjong
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.42 no.4
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    • pp.915-922
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    • 2017
  • Demand Response Market (DR Market) has risen as one of the key solutions to address the growth and fluctuation of electricity consumptions. In Korea, DR market has been in operation since 2014, where the focus has been mainly on large-scale loads. Small-scale DR market, however, is becoming increasingly important because small power consumers' contribution to the national power consumption has been increasing and because small loads tend to show large fluctuations. Furthermore, small-scale DR can improve social awareness on energy issues which can bring additional impacts. In this paper, we provide the findings from a small-scale consumer DR pilot. The pilot was conducted in the summer of 2016 on over 5,000 small-scale users in Korea, and smartphone applications were used in the pilot. The effectiveness of small-scale DR Market is analyzed and addressed, and the results indicate a promising future of small-scale DR Market.