Dynamic incentive framework for demand response in distribution system using moving time horizon control

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Abstract
This study presents two‐level static and dynamic responsive load scheduling strategies for optimal tradeoff between scheduling preferences of demand response provider (DRP), demand response provider agent (DRPA) and distribution system operator (DSO) using moving time horizon control for real‐time scheduling. The first level comprises of DRP scheduling with the objective of minimizing the electricity bill payments. The second stage includes a rescheduling strategy aided by DSO scheduling preferences constrained by the economic preferences of consumers set up in the first level of the scheduling strategy. There are two strategies for the second level: namely, static residential demand response (S‐RDR), and dynamic residential demand response (D‐RDR), which differ by the time sequence of operation and interactions between DRPA and DRPs. In S‐RDR, the interactions between the two are limited to single event‐acknowledge policy wherein all the DRPs act to schedule their responsive loads in a day ahead fashion. However, in D‐RDR, multiple/continuous iterations take place between DRPA and DRPs with the consideration of optimal performance with respect to real‐time market prices. The proposed framework is simulated using IEEE 34 bus distribution system. The simulation results are presented and discussed to analyse and compare the performance of proposed scheduling strategies with tariff‐based and centralized scheduling approaches.

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