Optimal Pricing Design for Demand Response Programs with the aims of simultaneously improving the profits and load factor
In this paper, a Real Time Pricing (RTP) design is proposed for Demand Response Programs (DRP) that it increases the benefit of the consumers and Load Serving Entity (LSE), in addition, improves the load factor (LF) of the network. It is possible for consumers to buy their energy from the retail market or participate in the LSE scheme and they will be paid the LSE price. The LSE ensures consumers that the dynamic price determined is less or equal to the retail price to encourage consumers to participate in the proposed scheme and maximize its profits. On the other hand, The LSE is tried to design prices that prevent a new peak demand. The proposed model is modeled as a multi-objective and bi-level optimization. The upper level of optimization is multi-objective, and it maximizes the LSE benefit and improves the network load factor. The benefit of customers is modeled in the lower level of this problem. The proposed model is solved using GAMS software and the results show the efficiency of the proposed model.
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