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The large-scale penetration of renewable energy, such as wind power, brings a lot of economic and environmental benefits to the grid, and it also causes hidden dangers in the reliability and security of the power system due to its uncertainty. As an effective demand-side management method, demand response has unique advantages in smoothing wind power fluctuations and mitigating grid pressure. This paper proposes a new model for the demand response aggregator (DRA) that includes both combined heat and power systems (CHPS) and energy storage devices. DRA can interact with the Independent system operator (ISO) through combined heat and power (CHP) units, energy storage devices, and the heat buffer tank to benefit from the electricity market and the thermal market simultaneously. At the same time, wind power producers (WPP) are modeled to turn wind power that was initially passively consumed into active market participants. The problem is modeled using an improved weighted method, which aims to take the diverse objectives of multiple market participants into account. The proposed model is tested on the modified IEEE RTS-24 test system to analyze the optimal scheduling strategies of each participant in the power market.

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Multi-Objective Day-Ahead Scheduling of Power Market Integrated With Wind Power Producers Considering Heat and Electricity Trading and Demand Response Programs