Multi-objective demand response allocation in restructured energy market

Recently, a massive focus has been made on demand response (DR) programs, aimed for electricity price reduction, transmission lines congestion resolving, security enhancement and improvement of market performance. The paper develops a method for optimally selecting the locations of DR programs in the network together with their capacities to achieve the maximum technical benefits derived from the programs. The method is based on the constrained optimization of multi-objective function formed in terms of the EENS (expected energy not supplied), active power loss, ATC (available transmission capacity) and total DR programs capacity. This multi-objective function is then optimized based on NSGA II (non-dominated sorting genetic algorithm) to find the amount and locations of DR programs. The IEEE 30 bus test system is used to demonstrate the effectiveness of the proposed method.