Demand Response Market Iterative Bidding Mechanism with Participation of Multiple Types of Flexible Load Users

In the context of the new power reform, tapping the potential of flexible load resources on the user side and considering the participation of multiple types of flexible load users in the demand response market is an important method to improve the system economy. In the demand response market, the current clearing methods are mostly uniform clearing or PAB (pay as bid) clearing. If PAB clearing method is adopted, market participants will tend to bid high prices, and the overall demand response cost of the system operator is high. Therefore, considering the participation of multiple types of flexible loads, this paper proposes a new iterative bidding market mechanism based on uniform clearing, and establishes a bi-level model of market clearing. The upper layer of the model is a market clearing model with the optimization goal of minimizing the cost of implementing demand response by system operator; the lower layer is a bidding decision-making model for different types of flexible load users with the goal of maximizing their own benefits. Through iterative bidding, the model can make the bidding close to the real cost of the users and reduce the total cost of demand response of system operator. Through the analysis of calculation examples in multiple scenarios, the economy and feasibility of the iterative bidding mechanism are verified.