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Pool-Based Demand Response Exchange - Concept and Modeling

journal contribution
posted on 2023-05-17, 09:57 authored by Nguyen, Duy Thanh, Michael NegnevitskyMichael Negnevitsky, de Groot, M
In restructured power systems, there are many independent players who benefit from demand response (DR). These include the transmission system operator (TSO), distributors, retailers, and aggregators. This paper proposes a new concept-demand response eXchange (DRX)-in which DR is treated as a public good to be exchanged between DR buyers and sellers. Buyers need DR to improve the reliability of their own electricity-dependent businesses and systems. Sellers have the capacity to significantly modify electricity demand on request. Microeconomic theory is applied to model the DRX in the form of a pool-based market. In this market, a DRX operator (DRXO) collects DR bids and offers from the buyers and sellers, respectively. It then clears the market by maximizing the total market benefit subject to certain constraints including: demand-supply balance, and assurance contracts related to individual buyer contributions for DR. The DRX model is also tested on a small power system, and its efficiency is reported.


Publication title

IEEE Transactions on Power Systems








School of Engineering


Institute of Electrical Electronics Engineers Inc (IEEE)

Place of publication

445 Hoes Lane, Piscataway, NJ, 08855, USA

Rights statement

Copyright 2011 IEEE

Repository Status

  • Restricted

Socio-economic Objectives

Energy storage, distribution and supply not elsewhere classified