Bi-Level Optimization Model for Customer Directrix Load-Based Demand Response in Industrial Parks

Customer directrix load (CDL)-based demand response (CDL-DR) program has the advantages of large-scale and easy implementation, which exhibits large potentials to improve the flexibility of power systems. When conducting CDL-DR program for load aggregators (LAs) in an industrial park (IP), it is necessary for the IP operator to design reasonable incentive to guide LAs to actively adjust their load curves according to the CDL. To solve this problem, we develop a bi-level optimization model for the IP operator to determine the incentive for LAs' CDL-DR. At the upper level, the IP operator sets the incentive prices according to the Euclidean distances between the LAs' load curves and the CDL, aiming to minimize its operation cost. In the lower level, the LAs adjust their power consumptions according to the incentive prices to maximize their profits. Numerical simulation is presented to verify the effectiveness of the proposed model.