Analyzing the system effects of optimal demand response utilization for reserve procurement and peak clipping

In this paper the effect of demand response (DR) resource utilization in the system operation is analyzed by using an optimization based simultaneous market clearing framework. Two distinct utilization patterns that DR can be involved are reserve supplying by Reserve Supplying Demand Response (RSDR) and providing actual curtailment for demand reduction or peak clipping by Peak Clipping Demand Response (PCDR). The provider of RSDR will sell its ability to tolerate probable curtailment and the PCDR will sell its real curtailment ability. These utilizations have different effects on system indices. Therefore the effect of different DR utilization patterns are analyzed and compared in this paper. IEEE RTS is selected as the test case for studying the effect of DR utilization patterns.