Benefits of Optimal Demand Response in distribution networks in a competitive retail market

This paper is concerned with the benefits of a price responsive scheme as a demand response program focus on residential end-users. We consider several retail companies operating in the retail market and the Distribution System Operator optimizing the physical resources of the distribution networks. The price responsive scheme is modeled as an OPF problem. We use a decomposition model to formulate the problem as a dynamic program that maximizes social welfare. A dual decomposition method is used to decouple the original problem, preserving the integrity of the private information of each participant and capturing its preferences and comfort policies.