Impact of optimal load response to real-time electricity price on power system constraints in Denmark

Since the hourly spot market price is available one day ahead in Denmark, the price could be transferred to the consumers and they may shift their loads from high price periods to the low price periods in order to save their energy costs. The optimal load response to a real-time electricity price for demand side management generates different load profiles and may have some impacts on power system constraints, such as voltage limits and capacity limits. The western Danish power system, which is currently the grid area in the world that has the largest share of wind power in its generation profiles and may represent the future of electricity markets in some ways, is chosen as the studied power system in this paper. A distribution system where wind power capacity is 126% of maximum loads is chosen as the study case. This paper presents a nonlinear load optimization method to real-time power price for demand side management in order to save the energy costs as much as possible. Simulation results show that the optimal load response to a real-time electricity price has some good impacts on power system constraints in a distribution system with high wind power penetrations.