Optimal price-based and emergency demand response programs considering consumers preferences

This paper presents a pricing optimisation framework for energy, reserve, and load scheduling of a power system considering demand response (DR). The proposed scheduling framework is formulated as a reliability-constrained unit commitment program to minimise the power system operation costs by finding optimal electricity prices and optimal incentives while guaranteeing the reliability of the system during contingencies. Moreover, customers’ attitude toward the electricity price and incentive adjustment and the effect of their preferences on load scheduling and operation of the system are investigated in various DR programs. The proposed scheme is implemented on an IEEE test system, and the scheduling process with and without DR implementation is discussed in detail by a numerical study. The proposed method helps both the system operators and customers to reliably schedule generation and consumption units and select the proper DR program according to defined prices and incentives in the case of an emergency.