A Study on Peak-Load Shifting and Transmission Congestion Cost Reduction by Using Demand Response in Electricity Market

This paper analyzes the effect of reliability improvement and congestion cost reduction through utilizing demand resources. In order to secure sufficient reserve margin, a new term for reserve margin is proposed into the social welfare index. The effect of load shifting and load leveling can be achieved by controling the reserve parameter according to the peak load or base load. Transmission congestion causes a difference in nodal prices on the congested line. The reduction of congestion cost can be achieved by giving differential incentives to the demand response aggregators according to the relative location based on the congested line.