Strategic Large Scale Residential Demand Management for Provision of Frequency Regulation under Spot Market Environment

High penetration of renewable energy sources in power system introduce significant challenges to frequency stability. Residential buildings are regarded as a typical demand response resource for regulation service. HVAC load accounts for the majority proportion of residential electricity consumption. Meanwhile, the controllable characteristic of HVAC load makes it perfectly suited for providing frequency regulation service. In this paper, a residential HVAC load shifting model is formulated as a linear programming problem. It aims to minimize the energy payment of residential customers by participating in frequency regulation market while considering the performance of tracking frequency regulation signals. The numerical case study shows that residential customers benefit from significant electricity cost reduction as long as they track the target within a small error margin.