Compensation Methods for Demand Response

• Main Author: Wang, Zhaofeng
• Format: Others
• Published: UKnowledge 2015
• Subjects: Demand Response; Local Marginal Price; Compensation Methods; Order 745; Power and Energy
• Online Access: http://uknowledge.uky.edu/ece_etds/71; http://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1075&context=ece_etds

Recently, more and more disputations about how demand response should be compensated have arisen. Moreover, the court is about to rehear the Order 745. It probably will have significant impact on the whole working system used to be built for demand response before. Nowadays, some power companies and utilities think that they will endure profits leakage while demand response resources still are compensated. In this research, knowledge of demand response, local marginal price, Order 745 and other related concept will be explained in detail in case of misunderstanding. Associated with all these knowledge, a possible compensation method will be proposed. It combines many existing compensation methods. It mainly can be divided into three parts, i.e., high load period, off-peak period and low load period. The demand response resources will be compensated appropriately through these three periods. The compensation method endeavors to be just and reasonable.