A Comprehensive Evaluation Method and Incentive Mechanism for Demand Response

The demand response is an effective way to relieve peak load, delay upgrading of power grid and improve the stability and reliability of power grid at the same time. In order to establish proper demand response evaluation method and incentive mechanism, an optimization model of subscribed load reduction was proposed with a target function of minimum incentive funds of a demand response program. The maximum, minimum interruptible load and unit compensation price was considered in the model. Based on the optimization model, a comprehensive evaluation method for demand response was proposed considering the impact of performance indicators A bonus-penalty mechanism was designed according to the actual load reduction of the contract customers to optimize the allocation of incentive funds. The calculation example indicates the feasibility and effectiveness of proposed optimization and evaluation method and bonus-penalty mechanism. The conclusions can be used as a reference for promoting the response of electric power demand based on incentive.