Load recovery in demand response scheduling

Load recovery is a major problem in scheduling demand response (DR) in a power system where they significantly increase the cost of electricity supply during off-peak periods. This paper analyses such intertemporal recovery effects on each customer and each involved stakeholder, using a novel financial valuation method termed `securitization'. Based on this local analysis, a global market clearing system is designed with the aim of maximizing a total market surplus, derived from the recovery-based DR, for all customers and stakeholders. The proposed DR scheduling approach via the securitization and market clearing is tested and its efficiency reported. Its potential applications as part of the future smart grid is also discussed.