Modeling and assessment of incentive based demand response using price elasticity model in distribution systems

The application of price elasticity model (PEM) in DR is considered as an appealing model for attributing the customer's demand sensitivity to price variation. It is also rendered in incentive based demand response (IBDR) program by augmenting with price based DR. This gives cumulative response of both DRs, but does not implicate the effect of incentive based DR, explicitly. Moreover, the impact on elasticity with the addition of incentives is not analyzed, analytically. Hence, these aspects are contributed as the part of the proposed study. In this context, an IBDR modeling using PEM is proposed to define effect of incentives in individual and the augmented DR. It proposes an incentive based elasticity in line with price based elasticity to differentiate their reflection on the system's economic and technical performance. Besides, IBDR models are critically evaluated based on the considered price strategies along with incentives to the customers. In addition, two pricing strategies along with IBDR are also suggested. A comprehensive analysis is carried out on the standard IEEE 33 distribution system bus load data to assess the efficacy of the proposed models and compared with the existing models. Further, these models are qualitatively assessed from both customers and utility perspective.

Automated summary

This study proposes an incentive based demand response model using the price elasticity model (PEM) to define the impact of incentives on individual and augmented demand response. It also evaluates different pricing strategies and incentives and compares them with existing models.