Elasticity modelling of price-based demand response programs considering customer's different behavioural patterns

Mathematical modelling of demand response programs (DRPs) aids regulators and policymakers in analysing the advantages of price-elastic loads on distribution system and electricity market. This mathematical model is used to find updated demand after DR for calculation of different technical and economical indices. In accordance with the concept of price elasticity of demand, an economic model of price sensitive load is developed. Price elasticity model (PEM) is a very useful tool to assess customer participation in DRPs. In this work PEM has been attributed on the ground of price elasticity of demand where PEM has been modelled by means of analytical and stochastic elasticity approach. Analytical elasticity has been modelled on the basis of ideal (lossless) approach whereas Stochastic elasticity has been modelled using Ornstein-Uhlenbeck process based on load flexibility and results obtained from these approaches were compared to check the acceptability of DR programs. It is observed that the proposed APEM and SPEM approaches provides maximum peak curtailment of 15% and 10.2% respectively during peak hours. Similarly, it is also noticed that both approaches improve load factor by reducing its peak-to-valley span by 47.33% and 35.7% respectively. The proposed models are investigated on standard IEEE 33-bus distribution system and modified IEEE 33-bus distribution system and are compared with already existing DR models. Technical and economical comparison of proposed approaches on both distribution systems shows that proposed models are competent enough to model customer behaviour properly.