Optimal Scheduling Model of Load Aggregator on Demand Side Under Demand Response

ABSTRACT The reaction capacity of the demand side would influence the price volatility in the electricity supply and demand scenario in the spot market because of the differences in user involvement in the market. To enhance the power market's stability and dependability, a demand‐side resource aggregation response optimization model is designed considering the load adjustment ability of users. First of all, a demand‐side response architecture covering various forms of user participation is established, and the demand response mechanism of users in different forms of participation under this architecture is analyzed. To guarantee the sustainability of the demand response mechanism in this architecture, the market clearing model taking into account the active response of indirect consumers is created, and the appropriate settlement method is suggested. Then, the revenue problem of demand‐side resource aggregators in the power market is mapped to the bidding decision problem, and the bidding optimization model of demand response under two contract modes of load reduction and load transfer is proposed. The findings indicate that demand response can improve the reliability of the distribution network and user benefit under the selected index and verify the rationality and effectiveness of the proposed method.