Stochastic Programming of Wind-Thermal Generation with Demand Response in simultaneous energy and reserve markets

Demand Response (DR) plays a key role in power systems with high penetration of wind power. In this paper, a two-stage stochastic operational planning model for wind-thermal generation which implements DR program has been proposed to minimize the total operation cost. Independent system operators (ISOs) can use reserves provided by DR besides spinning and non-spinning reserve which provided by generating units tocompensate random nature of wind power.In the proposed model, the discrete retail customer responses are aggregated by demand response providers (DRPs) and aresubmitted to ISO. In addition to up and down spinning reserve, DRPs can participate in energy market and submit their offers in the wholesale electricity markets. Random nature of wind power has been modeled by a scenario tree which is made of sampled probability density function. This approach is implemented over a daily time horizon on the IEEE 30- bus test system and the results are compared in two cases with and without DR. The results indicate the benefits of customers’ participations in energy and reserve market that in addition to compensate uncertainty of wind power, reduce total operation costs and emission

Keywords:

Demand response , wind generation , reserve , stochastic programming , demand response providers , air pollutants emission