Demand Response and Dynamic Pricing Simulation in a 4-Bus Power System

This paper proposes a simulation of a 4-bus power system network, inspired by the example in “Power System Analysis” by J.J. Grainger and W.D. Stevenson. The simulation incorporates dynamic pricing, demand response mechanisms, and power flow analysis using Pandapower, an open-source Python library for power systems modeling. The objective of this paper is to demonstrate how dynamic pricing and demand response can interact to balance generation and load in a power grid. By analyzing the effects of dynamic pricing on load profiles and generator outputs, this research aims to contribute to a deeper understanding of demand response strategies and their potential benefits in enhancing grid stability and efficiency.