Proliferation of Small Data Networks for Aggregated Demand Response in Electricity Markets

This paper proposes an aggregation method for proliferated small-size data networks to apply data networks’ spatial load regulation potentials for demand response (DR). First, each data network is modeled as a virtual power network, where the Internet data center load is modeled as a set of linear constraints. Second, an aggregated virtual power network (AVPN) is proposed to demonstrate the aggregation method potentials in power systems and to emulate DR applications for multiple virtual power networks in wholesale markets. The coupling of AVPN and power network would develop a linear load model for an aggregated Internet data center. Furthermore, the supply curves representing AVPN DR are formulated to capture heterogeneous regulation costs of virtual power networks, which guarantees limited welfare losses in AVPN DR compared with the individual DR of virtual power networks. Last, an AVPN DR implementation mechanism is deduced to reveal the potentials of the aggregation method in power system applications. Simulation results verify the efficiency of the proposed aggregation method for spatially-coupled DR resources, where, the computing time of the AVPN-based OPF without welfare loss is reduced by 99.94% when there are 3×10 4 data networks. The proposed aggregation strategy implies that the proliferation of small-size data networks will offer a reasonable DR for enhancing the power system operation in wholesale electricity markets.