Optimal Compensation Strategy for Demand Side Response to Improve the Renewable Energy Consumption

Herein, efforts are mainly made to investigate the way to promote new energy to be better absorbed in the multi-energy market where comprehensive demand response participates in competition. Considering the future trend of new energy power generation, a multi-market trading framework for IDR (integrated demand response) resources to get involved in competition is hereby proposed to address the problem of wind and electricity abandonment. The integrated demand response exchange (IDRX) market is introduced. In the case of scarce power resources, IDR users can increase their power demand response ability through gas-electric replacement, sell power load reduction resources in IDRX market and purchase natural gas resources for power replacement. The integrated demand response aggregator (IDRA) obtains power load reduction resources through the IDRX market and satisfies the gas purchase demand of IDR users. Meanwhile, the obtained power load reduction resources are used by IDRA to compete in the power wholesale market, and participate in the natural gas market demand bidding competition. Based on this multi-market trading framework, a compensation mechanism is introduced, a two-layer optimization model is constructed. The optimum compensation coefficient is calculated using the benders decomposition algorithm. Finally, an example is given to verify the validity of the hereby proposed trading framework, and the results indicate that the new energy can be better absorbed under the trading framework.