Optimal re-distribution of incentives to the demand responsive loads during overlap

Electricity consumption patterns of consumers have changed, need for electricity magnified, unfriendly behaviour with conventional sources and stochastic and uncontrolled outputs of Distribution energy resources (DERs) are the significant factors driving the electrical sector into a new era, where considerable portion of peak demand was reduced, shifted and curtailed. Demand side bidding (DSB) offers a very flexible and efficient means of meeting the occasional peak load demand and fosters the operational flexibility of the grid. However, due to the occurrence of overlap between demand reduction and demand re-distribution loads that leaves aggregator in a quandary. The presence of overlap results in unwarranted price spike which reduces the profit further, the distribution of incentives to the demand responsive loads becomes difficult. To overcome the aforementioned challenges, this paper focuses in maximizing the aggregator profit and a method was proposed to re-distribute the incentives to the demand responsive loads when there is an overlap through scheduling of control periods. In addition, market clearing price (MCP), operational cost (OC) of the microgrid and total consumer tariff (TCT) has been presented in the results.