| Title |
Analysis on Demand Response Aggregator in Electricity Market |
| DOI |
https://doi.org/10.5370/KIEE.2017.66.8.1181 |
| Keywords |
Demand response ; Electricity market ; Demand reduction ; Balloon effect ; Demand response aggregator |
| Abstract |
The purpose of Demand Response is to reduce the cost of excessive resources and equipment by spontaneous load reductions at peak loads. Having enough power consumers participating in these schemes is key to achieving the goal. Demand Response Aggregator (DRA) is responsible for recruiting demand resources and managing them to participate in reducing the load. DRAs change the price elasticity of demand functions by providing incentives to demand response, thereby affecting price formation in the electricity market. In this paper, this process is modeled to analyze the relationship between DRA's strategic bidding and market outcomes and load reductions. It analyzes the results by applying to competition between DRAs, competition between DR and Gencos, and coexistence of DR load and non-DR load. It is noteworthy that we have found a phenomenon called the Balloon Effect. |