Abstract

In a power system, balance between the supply side and the demand side is important. This paper proposes Lagrangian relaxation method to implement on demand response programs with the help of a market participant known as Demand Response Provider (DRP). The DRP takes an interest in power market as a medium between the independent system operators (ISOs) and retail clients. It totals and deals with the customer's reactions to ISO offered programs. The presented algorithm cares about various security constraints which are practically handled by the system. After modelling these constraints, the cost of generation is minimized for the given load profile in the given time interval. The reserve is also scheduled along with the generation scheduling, thus the cost function of DRP is also added to the objective function.