Reliability assessment of incentive- and priced-based demand response programs in restructured power systems

Fostering demand response (DR) through incentive-based and priced-based programs has always great impact on improvement of efficiency and reliability of the power systems. The use of DR lowers undesirable effects of failures that usually impose financial costs and inconveniences to the customers. Hence, quantifying the impact of demand response programs (DRPs) on reliability improvement of the restructured power systems is an important challenge for the independent system operators and the regional transmission organizations. In this paper, the DR model which treats consistently the main characteristics of the demand curve is developed for modeling. In proposed model, some penalties for customers in case of no responding to load reduction and incentives for customers who respond to reducing their loads are considered. In order to make analytical evaluation of the reliability, a mixed integer DC optimal power flow is proposed by which load curtailments and generation re-dispatches for each contingency state are determined. Both transmission and generation failures are considered in contingency enumeration. The proposed technique is modeled in the GAMS software and solved using CPLEX as a powerful mixed integer linear programming (MILP) solver. Both supply-side reliability for generation companies and demand-side reliability for customers are calculated using this technique. In order to simulate customers' behavior to different DRPs in a real power network, the proposed DR model is used and evaluated over Iranian power network. In order to investigate the reliability effects of DRPs based on proposed reliability method. DRPs based on the DR model are implemented over the IEEE RTS 24-bus test system, and reliability indices for generation companies, transmission network and customers are calculated. Using proposed performance index, the priority of the DRPs are determined from view point of customers, generation companies, transmission network and the whole system in IEEE RTS. (C) 2013 Elsevier Ltd. All rights reserved,