Optimal bidding strategy for demand side considering customer satisfaction

Customer-side demand response is of great significance for better balancing the demands and supplements in energy markets. In this paper, we propose a new model approach of customer-side demand response in block bidding markets. Based on the model, a new strategy for combining shiftable load segments is proposed in order to get a long duration load segment for the purpose of reducing electricity purchasing price. The optimization problem of load segments combination is considered as a special box filling problem with deformable rectangle, which constrains that each rectangle is horizontally continuous and longitudinally movable. To solve this problem, the non-dominated sorting based multi-objective evolutionary algorithm (NGSA-II) with nonlinear constraints is used. We also model the degree of customer satisfaction as a standard for evaluating the combination solution of our strategy and analyzing the commercial behaviors of power-retailing companies from the perspective of economic sociology. The strategy is applied to an actual case. Simulation results show that the combination of load blocks can greatly reduce the price of electricity purchase and verify the effectiveness of the proposed strategy.