Papers › Localized Load Reduction Market Development Considering Network Constraints
Localized Load Reduction Market Development Considering Network Constraints
Mohammad Panahazari, Minoo Mohebbifar, Vahid Nazari Farsani, Mahmoud-Reza Haghifam
With the development of the smart grid concept and the increasing expansion of advanced communication and measurement equipment, consumers can actively participate in the power system operation. The intelligent use of these facilities greatly helps the power system entities to achieve their objectives more efficiently and less expensively. As a beneficial facility, the market mechanism has proven to be a solution to various power system challenges. Furthermore, distributed and localized solutions have shown to be helpful in both reducing operation costs and accelerating the execution of the programs. In a generation shortage condition, to prevent unwanted load curtailment and wholesale market price spikes, utilities can get consumers' help to reduce the load in return for payments. This paper proposes a localized load reduction market model in the distribution system, in which consumers bid for their participation rate at the corresponding prices. Then, a market optimization problem will be solved by considering the technical constraints of the network through the use of Genetic Algorithm (GA). The paper then shows that utilizing the proposed model reduces operation costs.
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