Demand Response in Electricity Markets: The Effect of Dynamic Cross Price Elasticity in Nord Pool

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en
dc.contributor.advisor Ali, Mubbashir Bashir, Arslan 2016-03-29T11:22:44Z 2016-03-29T11:22:44Z 2016-02-15
dc.description.abstract In the context of restructured electricity markets, modelling of demand response (DR) is inevitable to evaluate the effects of price responsiveness on system demand and determine new demand supply equilibrium parameters in real time. Due to high volatility of day ahead market prices and long planning horizon, consumers may decide to modify their load profile. This work demonstrates the impact of price based DR on day ahead market equilibrium in Nordic electricity market and one possibility of real time price formation with regard to Elspot curves. Concepts of both self and cross price elasticity are utilized to assess inter-temporal characteristics of demand. For doing so, flexible price elasticity matrices are developed to accurately model customer electricity consumption pattern using historical demand and price data from Nord Pool. The calculated DR is then analyzed in demand supply curves of Elspot to check if it distorts the equilibrium i.e., increase in price is significant with respect to demand. Accordingly, an optimization algorithm is proposed for load aggregator to minimize the overall cost of purchasing electricity from the market without compromising on the comfort level and determine the optimal hourly load and price for given Elspot curves considering flexible DR. The proposed algorithm rests on linear programming approach. Simulation and numerical studies are performed for target day of winter. The obtained results verify the DR optimization algorithm. Based on the optimal prices, the load aggregator can set a flat tariff for its customers. en
dc.format.extent 82
dc.language.iso en en
dc.title Demand Response in Electricity Markets: The Effect of Dynamic Cross Price Elasticity in Nord Pool en
dc.type G2 Pro gradu, diplomityö en Sähkötekniikan korkeakoulu fi
dc.subject.keyword demand response en
dc.subject.keyword Nord pool en
dc.subject.keyword elspot en
dc.subject.keyword price elasticity en
dc.identifier.urn URN:NBN:fi:aalto-201603291529
dc.programme.major Electrical Systems fi
dc.programme.mcode S3015 fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Diplomityö fi
dc.contributor.supervisor Lehtonen, Matti
dc.programme EST - Master’s Programme in Electrical Engineering (TS2005) fi
dc.location P1 fi

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