University of Illinois Urbana-Champaign

Analysis of the Day-Ahead Load Response Program of the ISO New England

Paimin, Nur Atikah

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Description

Title
Analysis of the Day-Ahead Load Response Program of the ISO New England
Author(s)
Paimin, Nur Atikah
Contributor(s)
Gross, George
Issue Date
2009-05
Keyword(s)
  • electricity markets
  • New England Independent System Operator
  • demand response
  • day-ahead demand response
Abstract
Demand response programs are designed to stimulate response from customers who participate in the programs such that they curtail their consumption temporarily during periods of high electricity demand. Effective demand response programs decrease the amount of electricity demand in the wholesale market and bring about more moderate pricing of electricity in high-demand periods. The rises in fuel prices and the growing awareness of environmental concerns have led to a wider implementation of demand response programs in various jurisdictions with different designs. The objective of this thesis is to analyze the nature of the day-ahead demand response program of the New England Independent System Operator (ISO-NE) system. A salient feature of this program is that it allows loads to offer demand reductions into the day-ahead energy market operated by ISO-NE. We investigate the impacts of the program, the bidding behavior of the program participants and the policies that affect the observed behavior. We present a statistical analysis of the program outcomes from September 2007 to July 2008. We observe that certain policies regarding load reduction bids may discourage loads from participating in the market. We present results that illustrate the variations in the total revenue earned by the demand response loads with respect to the parameters of the load reduction offers.
Type of Resource
text
Language
en
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http://hdl.handle.net/2142/47047

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