Open AccessEquilibrium Model of Electricity Market Bidding Considering Incentive-based Demand Response
Author(s) -
Yaxian Zheng,
Zhongyao Chen,
Xinhong Shi,
Wang Gaoqin,
Kaiying Lin,
Beibei Wang
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1754/1/012024
Subject(s) - bidding , incentive , demand response , market clearing , electricity market , economics , microeconomics , electricity , compensation (psychology) , engineering , psychology , psychoanalysis , electrical engineering
In the initial stage of electricity market construction, incentive-based demand response can effectively mitigate price spikes. Considering the overall equilibria of the market, it is of great significance to study the impact of incentive-based demand response on market clearing and participants’ behaviours. Firstly, this paper analyzes the compensation methods of incentive- based demand response and establishes an equilibrium model of day-ahead electricity market bidding that takes into account demand response. Secondly, considering the overall equilibrium conditions of the market, the overall equilibrium model of the market is established. Results show that the incentive-based demand response mechanism has a restraining effect on the generators’ bidding, and the load reduction effect is prominent when the network is congested.