SÁNCHEZ DE LA NIETA LÓPEZ, AGUSTÍN ALEANDRO, Gibescu, Madeleine
Si
Int. Conf. European Energy Market, EEM
Proceedings Paper
Científica
01/01/2018
000482771100132
2-s2.0-85055536845
The day-ahead electricity market is composed of demand and supply orders. Once market participants have sent their orders, the market clearing algorithm decides the accepted and rejected orders, according to the principle of social welfare maximization. This paper proposes the maximization of daily social welfare through demand side management (DSM), modeled as flexible demand orders per time interval. For that purpose, a linear programming model is implemented whose objective function maximizes the daily social welfare following the balance and the demand side management constraints. A test case over 24 hours shows three strategies through a new price order. These strategies are as follows: the new price order is equal to, higher or lower than the price of the original demand order. Some conclusions are also drawn with respect to the social welfare and the consequences for the suppliers.
Day-ahead electricity market; demand side management; flexible demand order; linear problem; social welfare