Day-Ahead Bidding Strategy of Load Aggregators Based on Incentive Demand Response

Load aggregators (LAs) play a crucial role in demand response (DR) programs by enabling large energy consumers to participate in the electricity market. Incentive demand response is a type of DR that motivates consumers to reduce their energy consumption by providing them with economic incentives. This paper proposes a day-ahead bidding strategy for LAs, which allows them to optimize their bidding decisions in response to the price signals provided by the market operator. To validate the effectiveness of the proposed strategy, simulation experiments are conducted on a realistic power system model. Therefore, the proposed strategy can be used as a useful tool for LAs to participate in incentive demand response and maximize their economic benefits.