Economic effect of demand response programs on coupled active/reactive market prices in deregulated electricity markets

In this paper economic effect of demand response programs on coupled active/reactive market prices in deregulated electricity markets has been presented. The main objective of the proposed coupled active/reactive power dispatch model is to minimize the total payment burden on the Independent System Operator (ISO). Optimal location and amount of DR has been determined by the modified optimal power flow program. The proposed method is evaluated by numerical studies based on IEEE 39-bus test system.