Applying Demand Side Management Mechanism in Smart Grid Framework

This paper presents an economic framework for the virtual power plant (VPP) to participate in joint energy and regulation markets. Differnet electricity consumers and wind turbine are aggregated in the proposed VPP model. VPP persuades its consumers to provide regulation reserve by signing incentive agreement. A scenario tree is applied to model uncertain parameters including energy and regulation prices, wind turbine (WT) production, regulation reserve calling probabilities and consumer behaviors. Two different case studies are presented to demonstrate robustness of scheduling framework.

Keywords:

Virtual power plant , Regulation reserve , Demand Side Management , Electricity consumers.