Model of interruptible load contract for minimum compensation cost

Abstract

Interruptible load (IL) management as an important component of demand-side management in electricity market affects much the safe and economic operation of the power systems. The cost-benefit of interruptible load participants is analyzed in this paper. The discrete customer category is proposed to indicate the expected compensation for the blackout. This paper presents a model of IL contract, in which the objective function is the minimum compensation cost paid by the power company. The benefits of the power company and the customer are both considered as the restrictions of the model. The actual system examples show the validity of the proposed model.