Design of incentive price for voluntary Demand Response Programs using fuzzy system

In recent years, the electricity market is adopting Demand Response Programs (DRPs) to shade the part of the peak demand through the voluntary participation of customers. Customers in such program respond to incentive price. Incentive based programs are prominent in many parts of the world for its simplicity and fairness. But the price of incentive is a key parameter to implement these program successfully. A fixed incentive price is not sufficient to motivate the customer throughout the day. The paper proposes a fuzzy based dynamic incentive scheme for residential customers to effectively incorporate the influences of socioeconomic conditions, expected-curtailment, probability of curtailment and notice-period.