Unit commitment considering demand response behavior based on utility maximization

The active participation of demand side resources in power grid operation not only benefits the individual participant but also benefits the whole system. The optimal goal can promote by excavating the active behaviors of demand side. The welfare maximization of market participant is the driving force of such active behaviors. Considering the independence of each user's behavior, the consumer's utility function is selected to depict consumer's preference and demand response behavior. In order to coordinate the consumers' maximum welfare with social welfare maximization, consumers' utility function and units' operation cost are integrated into Unit Commitment (UC) model. The objective function is to maximize social welfare, by subtracting units' operation cost from consumers' total utility, and this objective can be acquired. Considering the proposed model should be solved in a distributed manner, the idea of the centralized coordination and the decentralized decision-making is proposed. Based on the Lagrangian relaxation (LR) principle and distributed real-time pricing scheme, a closed-loop feedback mechanism is constructed to reflect the relationship among generator output, price level, and load demand. The ten generating units example can illustrate the effectiveness of the proposed method.