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Virtual peak plant concepts of Demand Response

Demand Response (DR) extends customer participation on power system and brings about a paradigm shift from simplex to interactive operation in power system with the advancement of smart grid technology. Therefore it is important to model the characteristics of customers in DR, and this paper proposes customer information as registration and participation information of DR which are some indices to evaluate customer response such as DR magnitude, duration, frequency and marginal cost, and the customer response characteristics are modeled from this aggregated information. This paper also introduces a new concept of virtual generation resources with their marginal cost calculated in the same form as the conventional generation marginal cost according to customer information. Finally, some constraints of DR are manipulated and expressed using the information modeled in this paper with various status flags, and the optimal scheduling combined with generation and DR is proposed by minimizing the system operation cost including generation and DR cost, with the generation and DR constraints developed in this paper.