Optimising Demand Response Considering Different Load Types and Payback Potentials

In a distribution network (DN), when loads offer flexibility during demand response (DR) optimisation, they often require additional supply to restore services, such as heating, requiring extra power for system restart. Capturing this impact requires considering not only the payback effect but also diverse load characteristics and their payback requirements. Although payback has been partially addressed, load diversity remains inadequately considered, potentially undermining the value of flexibility, or expecting unfeasible additional services from consumers. This paper aims to tackle this issue by proposing a day-ahead optimisation approach for DR planning, incorporating load diversity, and comprehensively assessing payback potential. The payback potential metric for different load types has been introduced to enable detailed modelling based on required reconnection schemes (i.e., load payback), facilitating optimised DR scheduling to meet load preferences and network needs. This methodology is illustrated through case studies using a modified IEEE 33 bus DN model. The findings demonstrate how optimised activation of flexible demands across different load types, each with distinct reconnection schemes, provides a more realistic reflection of DR planning's impact on the DN and improves DN performance metrics.