A novel method for evaluating the impact of residential demand response in a real time distribution energy market

This paper provides a new methodology for assessing the effect on both residential users and distribution networks of the introduction of demand response initiatives based a novel transactive controller. The proposed controller considers forecasted load peaks and distribution locational marginal prices in a real time distribution market. Monte Carlo simulation is used to consider the stochastic variations of the involved variables and assess the impact of the proposed method. Simulations results, carried out over 1 month in winter and considering a 74-buses distribution network, demonstrated that (1) residential end-users can achieve cost savings and (2) the reliability of the distribution network can be improved