Empirical analysis of convergence and sensitivity of demand response based on real time pricing

Increasing penetration of intermittent renewable energy at distributed and bulk generation level introduces challenges in maintaining supply-demand balance in the electric grid. To achieve demand-following-generation regime, it is important to utilize flexibility of demand by direct or indirect control. It is referred as Demand Response (DR). Indirect control involves incentives or variable prices in different time blocks to bring the aggregated demand at a desired level. In a market scenario, demand and price are mutually dependent variables, i.e., demand can affect the price and vice-versa. In this paper, we present an empirical analysis of demand response based on real time pricing. The analysis is done to study the convergence of the demand in a closed loop market scenario and sensitivity of DR with varying price elasticity.