Importance of social welfare point for the analysis of demand response

Abstract

The demand response is a program that changes the electricity use by end-use customers in response to some sort of incentive or price signal. Demand Response programs (DRPs) are highly sought-after and promoted almost in every country. Although the ways, scope and scale of implementation DR program are different in different countries. DR helps regulator to bring the grid to more secured condition by the balancing act of both the generating units and customers demand. Therefore both generating units and customers are to be satisfied with the market operation for successful implementations of DR. Case studies shown in this paper illustrate the importance of profit evaluation of both the entities to protect the spirit of DR programs. The profit of generating utilities and customer utilities will be different for different Demand Response values. Therefore social welfare is considered for obtaining a best profitable point of both the entities. This paper takes an attempt to explore the DR points at different loading conditions using profit based social welfare point. Results on scheduling of 10 generating units are provided to justify the approach considered in this paper.