An Agent-based Market-Clearing Scheme for the Exchange of Demand Response

It is widely agreed that Demand Response (DR), in the form of load curtailments in power systems, not only improve the system reliability but also the market efficiency through the mitigation of spot price volatility. This panel paper introduces a novel agent-based market-clearing scheme for fairly distributing the benefits of such DRs on various categories of market participants (as agents). The proposed scheme is called Demand Response eXchange (DRX), in which DR is treated as a virtual resource to be exchanged between two groups of participating agents, namely DR buyers and sellers. While buyers demand DR and are willing to pay for it, sellers have the capability to curtail customer loads to supply this DR on request. Core concepts and are developed in this paper.