Assessment of alternative contract designs for demand side response in Turkish electricity supply system

Abstract

Demand Side Response (DSR) is the changes in electricity consumption of end users from their usual consumption especially during peak consumption hours. It is expected that Turkey will become to implement interruptible load DSR program soon. These programs are based on the agreements regulating the interaction among actors who are willing to participate into the program. In this study, the impacts of alternative agreements designed by using different approaches on the revenue is assessed from the perspective of a demand aggregator (DA). These approaches are related to the allocation of the interruption order among consumers, payment options offered to consumers and the existence of upper limit of the interruption order for consumers. An agent-based model has been constructed to simulate 14 different scenarios composed of various combination of these approaches. After the model has been tested through validation procedures, model has been verified by using data sets produced from real data. The results of scenarios simulated in this study show that the DA can make profit even if it allocates all income taken from the independent system operator (ISO) among consumers. It can increase the profit by using different payment options and different methods for allocating the interruption order. For all scenarios, all consumers also can make profit. However, some experiments represent more fair profit distribution for consumers. Finally, the DA can reduce payment paid to the ISO as penalty for some scenarios. Nevertheless, the decrease in the income collected from consumers as penalty is not at a significant level.