A Review of Demand Response in Electricity Markets

The introduction of electricity market demand response competition can restrain market power, optimize resource allocation and realize benign and stable market operation. This paper introduces the basic concept of demand response, summarizes the research status and implementation status of DR worldwide, and classifies the DR in the power market, including the DR classification based on price and incentive. This paper discusses the function of demand response measures, and finally, combining the situation of China's power market reform, puts forward the suggestion and idea of carrying out DR, points out that in the design of China's power market, we should fully learn from the practical experience of foreign countries, planned, step-by-step response to demand, and discusses the further research direction.