NDLI: Demand response procurement framework: a new four-step probabilistic method

Content Provider	IET Digital Library
Author	Ma, Jessie Venkatesh, Bala
Abstract	This study presents a new market-driven and transparent pricing mechanism for demand response (DR) that ensures social welfare is maximised. The existing methods have DR priced at the electricity market clearing price (EMCP), where the EMCP is determined in a market solely comprised of aggregated generator price bids and demand bids. DR supply bids are not included in the current economic market model, resulting in inefficient markets. The authors also present a new metric, Actual Price, which captures two key elements missed by EMCP: (a) the price paid to DR suppliers (EMCP covers only the price paid to generators); and (b) the reduced pool of paying consumers when DR suppliers leave the buyer pool. An implementable process for DR planning using the authors’ new concepts is presented. Results are shown for systems with and without location pricing. The results demonstrate that the proposed DR procurement method yields lower Actual Prices than existing methods and results in savings for customers. These ideas can guide regulators in determining market-based pricing policies for DR as well as Independent System Operators and system operators in determining DR procurement levels.
Starting Page	606
Ending Page	618
Page Count	13
ISSN	17518687
Volume Number	14
e-ISSN	17518695
Issue Number	Issue 4, Feb (2020)
Alternate Webpage(s)	https://digital-library.theiet.org/content/journals/iet-gtd/14/4
Alternate Webpage(s)	https://digital-library.theiet.org/content/journals/10.1049/iet-gtd.2019.0628
Journal	IET Generation, Transmission & Distribution
Publisher	The Institution of Engineering and Technology
Publisher Date	2019-12-16
Access Restriction	Open
Rights License	Creative Commons Attribution-Non Commercial-No Derivs License (http://creativecommons.org/licenses/by-nc-nd/3.0/)
Subject Keyword	Actual Price Aggregated Generator Price Bids Buyer Pool Current Economic Market Model Demand Bids Demand Response Procurement Framework Demand Side Management DR Planning DR Procurement Levels DR Procurement Method Yields DR Suppliers DR Supply Bids Electricity Market Clearing Price EMCP Four-step Probabilistic Method Inefficient Markets Location Pricing Market-based Pricing Policy Market-driven Mechanism Metric Price Power Market Power System Economics Power System Managemen Power System Operation Pricing Procurement Reduced Pool Social Welfare Transparent Pricing Mechanism
Content Type	Text
Resource Type	Article
Subject	Control and Systems Engineering Energy Engineering and Power Technology Electrical and Electronic Engineering

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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