Study on the Competition Modes of Demand Response Aggregators Participated in the Electricity Market

Due to the worldwide energy conservation and emission reduction policies and the development of smart grid, demand response gains wide attention and application around the world. The implementation of various demand response programs will certainly have great effects on the market participants' strategic behaviors and the overall electricity market competition outcomes. Assume that the flexible consumers are allowed to compete in the electricity wholesale market in the form of DR aggregators, the Cournot and Supply Function (SF) equilibrium models are build, respectively. The nonlinear complementarity approach is used to solve these equilibrium problems. Numerical examples show that: (1) The DR resource joined the market competition can effectively encourage the flexible consumers to shift the load from peak periods to off-peak periods, and reduce the gap between peak and valley. (2) For flattening the system load curve, the model of DR aggregators with Cournot mode is better, and for flattening the electricity price curve, the model of DR aggregators with SF mode is superior.