Effects of Interruptible Load Program on Equilibrium Outcomes of Electricity Markets with Wind Power - Intelligent Computing for Sustainable Energy and Environment - page 410

Effects of Interruptible Load Program
on Equilibrium Outcomes of Electricity Markets
with Wind Power
Xuena An, Shaohua Zhang, and Xue Li
Key Laboratory of Power Station Automation Technology
Department of Automation, Shanghai University, 200072 Shanghai, China
Abstract. High wind power penetration presents a lot of challenges to
the flexibility and reliability of power system operation. In this environ-
ment, various demand response (DR) programs have got much attention.
As an effective measure of demand response programs, interruptible load
(IL) programs have been widely used in electricity markets. This paper
addresses the problem of impacts of the IL programs on the equilibrium
outcomes of electricity wholesale markets with wind power. A Cournot
equilibrium model of wholesale markets with wind power is presented,
in which IL programs is included by a market demand model. The intro-
duction of the IL programs leads to a non-smooth equilibrium problem.
To solve this equilibrium problem, a novel solution method is proposed.
Numerical examples show that IL programs can lower market price and
its volatility significantly, facilitate the integration of wind power.
Keywords: Interruptible Load Programs, Cournot Competition, Equi-
librium Analysis, Wind power, Electricity Markets.
1 Introduction
Under the background of the worldwide restructuring and deregulation of electric
power industries and the rapid development of the intermittent renewable energy
sources, DR has got massive attentions and applications, and also become one
of the most important parts in the ongoing smart grid development around the
world [1]-[4].
As an effective measure of DR programs, IL program aims to take advantage
of flexibility in customers power consumption to reduce the expensive spinning
reserve and avoid the generation capacity investment for the increasing power
demand [5]-[6]. In an IL program, consumers sign an interruptible load (IL)
contract with a retailer, which allows the retailer to interrupt part or all of the
supply of electricity to the consumers at times of high wholesale market prices
or when system reliability is jeopardized. Generally, the main terms specified
in an IL contract include: the interruptible load volume that the consumers are
willing to provide; the economic compensation for load interruption; and the
interruption condition, for example, when the wholesale market price is higher
than a certain value (hereinafter referred to as IL trigger price).