Stochastic Optimization of Demand Response Aggregators in Wholesale Electricity Markets

Subject Areas : International Journal of Smart Electrical Engineering

Atefeh Zomorodi Moghadam ¹ , Hossein Javidi Dasht Bayaz ² , Javad Saebi ³

1 - Electrical Engineering department, Ferdowsi University of Mashhad,Mashhad, Iran.
2 - Electrical Engineering department, Ferdowsi University of Mashhad,Mashhad, Iran
3 - 3Faculty of Engineering University of Bojnord, Bojnord, Iran.

Received: 2016-01-29 Accepted : 2016-01-29 Published : 2015-09-01

Keywords: risk management, DR aggregator, Electricity market, Stochastic optimization,

Abstract :

This paper proposes a stochastic framework for demand response (DR) aggregator to procure DR from customers and sell it to purchasers in the wholesale electricity market. The aggregator assigns fixed DR contracts with customers based on three different load reduction strategies. In the presented problem the uncertainty of market price is considered and the risk of aggregator participation is managed in stochastic optimization problem with CVaR. The feasibility of this problem is studied on a case of Alberta electricity market.