Key points are not available for this paper at this time.
The vast installation of intermittent energy sources (especially wind) has distorted the normal strict pattern of the net demand (demand minus RES production), increasing the importance of real-time balancing markets, which handle efficiently imbalances between supply and demand. In this paper, the incorporation of demand response bids within a real-time balancing market is modeled. The price signal, to which the demand responds, is a price derived from the total cost incurred by increasing or decreasing power of generation units, with a pay-as-bid pricing scheme. The demand price is defined implicitly as a function of the upward and downward supply offers. The proposed balancing market clearing model is formulated as a mixed complementarity problem. All inter-zonal and intra-zonal dc transmission constraints are incorporated to the problem, thus making it a problem of interregional balancing, and nodal prices are derived from its clearing. The credits/debits to generators for providing balancing energy are balanced in zonal and system level with the debits/credits of elastic and inelastic demand entities. The proposed model can be useful for designing future real-time balancing markets, in view of the forthcoming active participation of price-responsive demand and the significant RES penetration targets set by most countries.
Vlachos et al. (Wed,) studied this question.