The Transactions of The Korean Institute of Electrical Engineers (전기학회논문지)

The Korean Institute of Electrical Engineers (대한전기학회)
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Analysis of Cournot Model of Electricity Market with Demand Response

수요반응자원이 포함된 전력시장의 쿠르노 경쟁모형 해석

  • Lee, Kwang-Ho (Dept. of Electrical and Electronic Engineering, Dankook University)
  • Received : 2016.09.06
  • Accepted : 2016.12.13
  • Published : 2017.01.01
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Abstract

In order to reduce costs of electricity energy at periods of peak demand, there has been an exponential interest in Demand Response (DR). This paper discusses the effect on the participants' behavior in response to DR. Under the assumption of perfect competition, the equilibrium point of the electricity market with DR is derived by modeling a DR curve, which is suitable for microeconomic analysis. Cournot model is used to analyze the electricity market of imperfect competition that includes strategic behavior of the generation companies. Strategic behavior with DR makes it harder to compute equilibrium point due to the non-differential function of payoff distribution. This paper presents a solution method for achieving the equilibrium point using the best response function of the strategic players. The effect of DR on the electricity market is illustrated using a test system.

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References

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