Critical peak pricing with load control demand response program in unit commitment problem

In this study, critical peak pricing with load control (CPPLC), recently announced by Federal Energy and Regulatory Commission, is investigated in a cost‐emission‐based unit commitment (UC) problem. In order to be easily implementable with available real market solvers, the non‐linear, non‐convex problem formulation is converted to multi‐objective mixed integer linear programming (MMILP). The MMILP problem is then solved through a new modified ε ‐constraint multi‐objective optimisation method. Moreover, UC is applied not only to schedule the status of the generating units but also to determine both price deviations and load profile provided by CPPLC program. Finally, the conventional 10‐unit test system is employed to indicate the applicability of the proposed method through several case studies.