Day-Ahead Electricity Market Planning in the Presence of Wind Farms and Uncertain Customers Considering Demand Response Programs

Abstract

The growth of penetration of wind sources in the power system along with demand response programmes (DRPs) has led the electricity market and decision-making process in a complicated pathway. The inherent uncertainty of demand behaviour and wind turbine generation increases the complexity of decision-making as well. In this research, a new economic index is introduced to assess the feasibility of the mathematical modelling of the power system's economic performance from the consumers' and producers' social welfare perspective. The uncertainty is represented using the empirical cumulative distribution function along with the Monte Carlo method, and a probabilistic market analysis is conducted. The role of the spot market along with different demand response modelling and uncertainty in market clearing is addressed, and the functionality of the model in a comprehensive survey is demonstrated. Real data on an 8-bus test system is surveyed, and the efficiency of this approach to discovering the locational marginal prices is cleared to empower the independent system operator to monitor the market precisely. The results illustrate that the producer's and customer's costs reduced significantly, and the integration of participants in the spot market increases their profit and income.