Integration of Demand Side Management in Security Constrained Energy and Reserve Market

This paper proposes an approach for considering the impact of demand side management (DSM) in energy and reserve service scheduling problem considering index of customers' reliability in electricity markets. The market clearance is performed in the presence of demand side response and both energy and reserve are dispatched optimally while accounting for different load levels, previous operating points, unit ramping rates and possible contingencies that could occur in the system and the associated loss of loads. Alongside it accounts for the constraints including voltage and transmission limits in the system's steady state and probable outages. On the contrary of the existing research, this paper first maximizes the benefit of the customers with optimizing the load using demand side program and then the overall costs of energy, spinning reserve and interruption are minimized with this load. This paper studies the impact of DSM in two stages. In the first stage, optimal energy and reserve dispatch are performed with and without considering DSM. In the second stage two different types of DSM programs are compared and the difference in the optimum operating point of the market whilst considering each program is investigated. The effectiveness of the proposed method is examined by application to the IEEE 24 bus test system.