Open Access

ARTICLE

Flexible Load Participation in Peaking Shaving and Valley Filling Based on Dynamic Price Incentives

Lifeng Wang¹, Jing Yu^2,*, Wenlu Ji¹

1 Nanjing Power Supply Company, Nanjing, 210019, China
2 State Grid Jiangsu Electric Power Co., Ltd., Nanjing, 211103, China

* Corresponding Author: Jing Yu. Email:

Energy Engineering 2024, 121(2), 523-540. https://doi.org/10.32604/ee.2023.041881

Received 10 May 2023; Accepted 05 September 2023; Issue published 25 January 2024

Abstract

Considering the widening of the peak-valley difference in the power grid and the difficulty of the existing fixed time-of-use electricity price mechanism in meeting the energy demand of heterogeneous users at various moments or motivating users, the design of a reasonable dynamic pricing mechanism to actively engage users in demand response becomes imperative for power grid companies. For this purpose, a power grid-flexible load bilevel model is constructed based on dynamic pricing, where the leader is the dispatching center and the lower-level flexible load acts as the follower. Initially, an upper-level day-ahead dispatching model for the power grid is established, considering the lowest power grid dispatching cost as the objective function and incorporating the power grid-side constraints. Then, the lower level comprehensively considers the load characteristics of industrial load, energy storage, and data centers, and then establishes a lower-level flexible load operation model with the lowest user power-consuming cost as the objective function. Finally, the proposed method is validated using the IEEE-118 system, and the findings indicate that the dynamic pricing mechanism for peaking shaving and valley filling can effectively guide users to respond actively, thereby reducing the peak-valley difference and decreasing users’ purchasing costs.

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Keywords

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