An analytical approach is presented to evaluate the impacts of price-sensitive loads on congestion in transmission network. To achieve this aim, the Lagrange multipliers (LMs) of transmission lines’ power flow constraints are calculated from independent system operator's social welfare maximisation in which demand-side bidding is considered. It is shown that the LM of each congested line can be decomposed into five components. The first part is a constant value for the specified line, while the next two components are associated to generating units and the last two constitutive parts are related to load service entities (LSEs). The proposed decomposition obtains considerable information regarding the impacts of price-sensitive loads on congestion in transmission network. First, the sensitivity of congestion degree of each congested line to the bidding strategies and maximum price-sensitive demand of LSEs are indicated by weighting coefficients of the last two terms in the decomposed LM. Furthermore, the decomposition of LM to the constitutive components reveals the contribution of each generating unit and LSE to the congestion of corresponding line. The simulation results on a test system confirm the efficiency of the proposed approach.

References

1. 1)
  - 21. Jadid, S., Amoli, N.A.: ‘Factoring the price elasticity of demand in the optimal power flow’. Power Eng. Conf., IPEC, 2007, pp. 12–17.
2. 2)
  - 10. Hyung Seon, O., Thomas, R.J.: ‘Demand-side bidding agents: modeling and simulation’, IEEE Trans. Power Syst., 2008, 23, (3), pp. 1050–1056 (doi: 10.1109/TPWRS.2008.922537).
3. 3)
  - 25. Hajiabadi, M.E., RajabiMashhadi, H.: ‘LMP decomposition: a novel approach for structural market power monitoring’, Electr. Power Syst. Res., 2013, 99, pp. 30–37 (doi: 10.1016/j.epsr.2013.02.003).
4. 4)
  - 28. Li, H., Tesfatsion, L.: ‘ISO net surplus collection and allocation in wholesale power markets under LMP’, IEEE Trans. Power Syst., 2011, 26, (2), pp. 627–641 (doi: 10.1109/TPWRS.2010.2059052).
5. 5)
  - 13. Song, H., Tang, Y., Zou, Y., Li, Y.: ‘Analysis of power generation enterprise bidding strategies considering demand-side bidding’, Electr. Power Autom. Equip., 2007, 27, (6), pp. 43–47.
6. 6)
  - 20. Chung, T.S., Fang, D.Z., Kong, X.Y.: ‘Power market congestion management incorporating demand elasticity effects’, WSEAS Trans, Power Syst., 2006, 1, (7), pp. 1378–1382.
7. 7)
  - 1. Bompard, E., Carpaneto, E., Chicco, G., Gross, G.: ‘the role of load demand elasticity in congestion management and pricing’. IEEE Power Engineering Society Summer Meeting, July 2000, pp. 2229–2234.
8. 8)
  - 5. Albadi, M.H., El-Saadany, E.F.: ‘Demand response in electricity markets: an overview’. IEEE Power Engineering Society General Meeting, June 2007, pp. 1–5.
9. 9)
  - 7. Youseﬁ, A., Nguyen, T.T., Zareipour, H., Malik, O.P.: ‘Congestion management using demand response and FACTS devices’, Int. J. Electr. Power Energy Syst., 2012, 37, (1), pp. 78–85 (doi: 10.1016/j.ijepes.2011.12.008).
10. 10)
  - 11. Wang, B., Li, Y., Jin, W., Wan, Q.: ‘Influence of demand side bidding on peak load price based on cost analysis’, Electr. Power, 2006, 39, (1), pp. 31–35.
11. 11)
  - 7. Earle, L.R.: ‘Demand elasticity in the California power exchange day-ahead market’, Electr. J., 2000, 13, (8), pp. 59–65 (doi: 10.1016/S1040-6190(00)00145-7).
12. 12)
  - 24. Fu, X., Wang, X.: ‘Determination of load shedding to provide voltage stability’, Electr. Power Energy Syst., 2011, 33, (3), pp. 515–521 (doi: 10.1016/j.ijepes.2010.11.006).
13. 13)
  - 6. Elkhafif, T., Mahmoud, A.: ‘Estimating disaggregated price elasticities in industrial energy demand’, Energy J., 1992, 13, (4), pp. 209–217 (doi: 10.5547/ISSN0195-6574-EJ-Vol13-No4-11).
14. 14)
  - D.S. Kirschen , G. Strbac , P. Cumperayot , D. Mendes . Factoring the elasticity of demand in electricity prices. IEEE Trans. Power Syst. , 2 , 612 - 617
15. 15)
  - 19. Singh, K., Padhy, N.P., Sharma, J.: ‘Influence of price responsive demand shifting bidding on congestion and LMP in pool-based day-ahead electricity markets’, IEEE Trans. Power Syst., 2011, 26, (2), pp. 886–896 (doi: 10.1109/TPWRS.2010.2070813).
16. 16)
  - 29. Sun, J., Tesfatsion, L.: ‘Dynamic testing of wholesale power market designs: an open-source agent-based framework’, Comput. Econ., 2007, 30, (3), pp. 291–327 (doi: 10.1007/s10614-007-9095-1).
17. 17)
  - 8. Boonekamp, P.G.M.: ‘Price elasticities, policy measures and actual developments in household energy consumption—a bottom up analysis for the Netherlands’, Energy Econ., 2007, 29, (2), pp. 133–157 (doi: 10.1016/j.eneco.2005.09.010).
18. 18)
  - 12. Rassenti, S.J., Vernon, L.S., Wilson, B.J.: ‘Controlling market power and price spikes in electricity networks: demand-side bidding’, Proc. Natl. Acad. Sci., 2003, 100, (5), pp. 2998–3003 (doi: 10.1073/pnas.0437942100).
19. 19)
  - 10. Strbac, G.: ‘Demand side management: benefits and challenges’, Energy Policy, 2008, 36, (12), pp. 4419–4426 (doi: 10.1016/j.enpol.2008.09.030).
20. 20)
  - 22. Fahrioglu, M., Alvarado, F.L.: ‘Designing incentive compatible contracts for effective demand management’, IEEE Trans. Power Syst., 2000, 15, (4), pp. 1255–1260 (doi: 10.1109/59.898098).
21. 21)
  - B.F. Hobbs , C.B. Metzler , J. Pang . Strategic gaming analysis for electric power systems: An MPEC approach. IEEE Trans. Power Syst. , 2 , 638 - 645
22. 22)
  - 2. Rajaraman, R., Sarlashkar, J.V., Alvarado, F.L.: ‘The effect of demand elasticity on security prices for the PoolCO and multi-lateral contract model’, IEEE Trans. Power Syst., 1997, 12, (3), pp. 1177–1184 (doi: 10.1109/59.630459).
23. 23)
  - 23. Affonso, C.M., da Silva, L.C.P.: ‘Potential benefits of implementing load management to improve power system security’, Electr. Power Energy Syst., 2010, 32, (6), pp. 704–710 (doi: 10.1016/j.ijepes.2010.01.004).
24. 24)
  - 9. Zachariadis, T., Pashourtidou, N.: ‘An empirical analysis of electricity consumption in Cyprus’, Energy Econ., 2007, 29, (2), pp. 183–198 (doi: 10.1016/j.eneco.2006.05.002).
25. 25)
  - 18. Tuan, L.A., Bhattacharya, K., Daalder, J.: ‘Transmission congestion management in bilateral markets: an interruptible load auction solution’, Electr. Power Syst. Res., 2005, 74, (3), pp. 379–389 (doi: 10.1016/j.epsr.2004.11.010).
26. 26)
  - 17. Sun, J., Lo, K.L.: ‘A congestion management method with demand elasticity and PTDF approach’. Int. University Power Engineering Conf., 2012, pp. 1–6.
27. 27)
  - D.S. Kirschen . Demand-side view of electricity markets. IEEE Trans. Power Syst. , 2 , 520 - 527
28. 28)
  - 27. Couchman, P., Kouvaritakis, B., Cannon, M., Prashad, F.: ‘Gaming strategy for electric power with random demand’, IEEE Trans. Power Syst., 2005, 20, (3), pp. 1283–1292 (doi: 10.1109/TPWRS.2005.851954).
29. 29)
  - 15. Tellidou, A.C., Bakirtzis, A.G.: ‘Demand response in electricity markets’, Proc. 15th Int. Conf. Intell. Syst. Appl. Power Syst., ISAP 09, 2009, pp. 1–6.

Evaluation of price-sensitive loads’ impacts on transmission network congestion using an analytical approach

References

Related content