Optimal demand response considering the optimal power flow in electricity market

Abstract

Distribution generator (DGs) using renewable energy sources (RESs) has introduced in the distribution system from economy and the environment issues. However, high DGs penetration in distribution system cause voltage deviation beyond the statutory range and also reverse power flow toward the substation and generator. It is necessary to introduce the real time pricing (RTP) by distribution company (DisCo) for improve the above problems and load leveling. This paper propose a method that is demand response (DR) by a RTP in electricity market and provide reactive power incentive to cooperative customer for maintain distribution voltage within the proper range. This paper shows the effectiveness of RTP and reactive power incentive by simulation for DisCo and customer profit.