Day-ahead Generation Scheduling with Demand Response

Demand response measure is very important to improve electricity market function. In order to maximize their profit, large industrial or commercial consumer prefers redistributing load between periods to reducing load absolutely in demand response program. Considering demand response in day-ahead generation scheduling then need to deal with more complicated coupling constraints. To solve the problem, a Lagrangian relaxation method combined with variable duplication technique is presented in this paper. Test is performed with a 10-unit system. Results show the effectiveness of the proposed approach, and also reveal what influence demand response has on the day-ahead market.