Impact of Load Shifting on the Profit of Electricity Retailer based on Demand Response and Risk Management

Subject Areas : Communication

Kourosh Apornak ¹ , Soodabeh Soleymani ² , Faramarz Faghihi ³ , Babak Mozafari ⁴

1 - Mechanic, Electric and Computer Department, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 - Mechanic, Electric and Computer Department, Science and Research Branch, Islamic Azad University, Tehran, Iran
3 - Mechanic, Electric and Computer Department, Science and Research Branch, Islamic Azad University, Tehran, Iran
4 - Mechanic, Electric and Computer Department, Science and Research Branch, Islamic Azad University, Tehran, Iran

Received: 2018-07-03 Accepted : 2018-10-10 Published : 2018-12-01

Keywords: risk management, Power market, Retailer, Demand response program, Load shifting,

Abstract :

This paper aims to describe the role of electricity retailer in power market for persuading consumer to shift their loads. It presents the influence of load shifting on retailer profit and risk management in market environment. In this problem, retailer participates in bilateral contract, also stochastic programming is used to manage the uncertainties of pool prices and elasticity of consumer. It shows that by participating retailer in market contract, the retailer profit will be changed. This paper also analyzes the consumer behavior when the load is shifted from the time with high price to the time with low price. The tariff of demand response program used in this paper is Time of use pricing for the periods of week. Risk Measuring is done by Value at Risk (VaR) and Conditional Value at Risk (CVaR) in this study.