a. Department of Economics, Shahid Bahonar University of Kerman, Kerman, Iran. c. Shakhes Pajouh Research Institute, Isfahan, Iran.
b. Faculty of Engineering, Imam Khomeini International University of Qazvin, Iran. c. Shakhes Pajouh Research Institute, Isfahan, Iran.
d. Department of Engineering, Shahid Bahonar University, Kerman, Iran.
In recent years, integrated use of demand- and supply-side resources has been performed by electric utilities, because of its potential attractiveness, both at operation and economic levels. Demand Response Resources (DRRs) can be used as demand side options which are the consequence of implementing Demand Response Programs (DRPs). DRPs comprise the actions taken by end-use customers to reduce their electricity consumption in response to electricity market’s high prices; and/or reliability problems on the electricity network. In this paper, a dynamic economic model of DRPs is derived based upon the concept of flexible elasticity of demand and the customer benefit function. Precise modeling of these virtual negawatt resources helps system operators to investigate the impact of responsive loads on power system studies. This paper also aims to prioritize multifarious DRPs by means of Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) and entropy methods. Performance of the proposed model is investigated through numerical studies using a standard IEEE test system.