A Cooperation Model of Data Center Cluster and Electricity Retailer Base on Demand Response

Data centers’ colossal energy consumption and their flexible control for power shedding make them promising resources for demand response (DR). In this paper, we focus on the cooperation between the electricity retailer and data centers cluster to trade in energy curtailment form based on the demand bidding which is one of the most common types of incentive-based DR. If the purchase of electricity (in day-ahead or medium and long-term electricity market) cannot meet the actual electricity demand, the electricity retailer can procure energy curtailments from data centers cluster via a demand bidding process to avoid penalties or purchase electricity in the real-time electricity market at high prices. First, we define and deduce the calculation formulas of the energy reduction capacity and the energy reduction costs of data centers. Next, we formulate a cooperation mechanism for the electricity retailer and data centers cluster to trade in energy curtailment form based on demand bidding. The proposed model provides the mechanism can save the costs of the electricity retailer and data centers at the same time. In the end, simulation results based on PJM data are used to prove that the proposed model is beneficial to both the data centers and the electricity retailer.