Demand Response-Based Operation Model in Electricity Markets With High Wind Power Penetration

The issue of climate change has received considerable attention in recent decades. Therefore, renewable energies and especially wind units have become a central point of attention. The stochastic nature of wind power production is modeled by means of a scenario-based method to show the possible events in the real time. Based on the Monte-Carlo simulation method and employing constructed Rayleigh probability distribution function (PDF), several scenarios that demonstrate the behavior of wind farms in real time are generated. To this end, a uniform random variable is generated and assigned to the mentioned PDF. Afterwards, a wind speed with a probability is achieved followed by the amount of wind power generation. Also, with a scenario reduction method (forward method), the desired number of scenarios can be obtained. To cope with the uncertainties of wind power generation, resulting from the intermittent nature of this kind of energy, this paper proposes a demand response (DR)-based operation approach. In other words, unlike the previous models in the literature that considered a supplementary role for the DR, this paper introduces the main role for the DR in the operation of future electricity markets. This approach focuses on a comprehensive modeling of the DR programs (DRPs) for the operational scheduling of electricity markets, considering the uncertainties of the generation of wind turbines, aiming at increasing the network security and decreasing the operation cost. The incorporation of market-based DRPs, such as demand bidding and ancillary service DR, is also considered. Two novel quantitative indices are introduced to analyze the success of DRPs regarding efficiency and wind integration. Numerical results obtained on two IEEE test systems indicate the effectiveness of the proposed model.