Open Access Repository

Demand response exchange in a deregulated environment


Downloads per month over past year

Nguyen, DT 2012 , 'Demand response exchange in a deregulated environment', PhD thesis, University of Tasmania.

PDF (Front matter)
front-nguyen-th...pdf | Download (420kB)
Available under University of Tasmania Standard License.

PDF (Whole Thesis)
whole-nguyen-th...pdf | Download (3MB)
Available under University of Tasmania Standard License.


This thesis presents the development of a new and separate market for trading Demand
Response (DR) in a deregulated power system. This market is termed Demand Response
eXchange (DRX), in which DR in the form of hourly load reduction is considered a product
to be negotiated between two groups of market participants, namely buyers and sellers. DR
buyers, including all transmission companies (Transcos), distribution companies (Discos),
and retail companies (Recos) need DR for their risk management benefits related to, for
instance, transmission and distribution network security, and electricity market volatility.
Sellers, including all Energy Service Companies (ESCos), are capable of significantly mod-
ifying electricity customers demand to supply DR on request. The trading between these
sellers and buyers is settled by a new system operator termed DRX operator (DRXO).
Two alternative market clearing schemes, namely pool-based and agent-based, are de-
veloped as the ground technical mechanism of a DRX. In the former scheme, all sellers and
buyers are required to submit offers and bids re
ecting their marginal costs and benefits,
respectively, derived from a set of DR quantities. Based on this collected information, the
DRXO will clear the market by centrally maximizing the total benefit for all participants
under some economic constraints, i.e., demand-supply balance. In the other hand, in an
agent-based scheme the participants are viewed as economic agents that behaves in a self-
interested manner. The scheme will be designed to constrain each agent to ensure optimal
global efficiency, while also allowing agents to maximize their own profits locally.
In order to evaluate these DRX schemes, we develop a comprehensive assessment frame-
work using certain economic valuation methodologies such as cost-benefit analysis and ex-
ternalities treatment. Firstly, DR cost and benefit for each pariticipant in the market (i.e.,
buyers and sellers) are analysed in detail. Based on this local analysis, a global evaluation
is performed to determine whether the optimized DR can give a positive social surplus. If
so, the DR will be dispatched during the hour under consideration. Using this newly de-
veloped assessment framework, we demonstrate the advantages of DRX over conventional
DR trading/scheduling schemes. Throughout the thesis, both analytical proofs and numerical examples are provided to
substantiate the advantages of the proposed DRX schemes. Our formulations rely on a wide
range of theories: demand{supply modeling with a competitive market equilibrium, cost-
benefit analysis, spot pricing of electricity, and network reliability assessment. Numerical
simulations are performed on various test systems, including the Roy Billinton Test System
(RBTS), to illustrate the effectiveness of DRX in analysing and optimizating DR benefits.

Item Type: Thesis - PhD
Authors/Creators:Nguyen, DT
Keywords: electricity demand, power supply, reliability, economics, analytical models
Additional Information:

Copyright the Author

Item Statistics: View statistics for this item

Actions (login required)

Item Control Page Item Control Page