Modeling an Improved Demand Response Program in Day-Ahead and Intra-day Markets

The aim of this chapter is to present an improved version of incentive-based demand response program (IBDRP). Firstly, the formulation of the basic exponential IBDRP is explained to manifest the merits of the presented model. Then, the mathematical formulation of the improved IBDRP is explained which has three main novelties. The first merit is that the proposed model has improved the elasticity concept by considering it as a function of consumer type and consumption hour. In the second novelty, the incentive payments are not constant and are considered as a function of peak intensity. During the third one, the effects of intra-day electricity market are considered in formulation, too. This feature makes consumers able to provide more realistic participation in IBDRP. Finally, the authors have computed peak shaving and economic indices of two case studies in order to evaluate the efficiency of the proposed demand response model.