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http://dx.doi.org/10.5370/KIEE.2017.66.1.16

Analysis of Cournot Model of Electricity Market with Demand Response  

Lee, Kwang-Ho (Dept. of Electrical and Electronic Engineering, Dankook University)
Publication Information
The Transactions of The Korean Institute of Electrical Engineers / v.66, no.1, 2017 , pp. 16-22 More about this Journal
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.
Keywords
Demand response; Electricity market; Cournot; Equilibrium; Best response strategy;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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