PROMOTION OF SOCIAL WELFARE AND DEMAND-SIDE MANAGEMENT USING A MARKET CLEARING-BASED APPROACH IN THE PRESENCE OF PRIVATE SENSITIVELOADS

In this paper, a new market clearing-based method is presented to improve the level of the social welfare of the separate reactive power market (SRPM). The proposed method aims at improving the social welfare and demand-side management in the presence of private sensitive loads and multilevel tariff of demand. Private sensitive loads are considered to develop a multilevel tariff of demand. The social welfare and pure profit of the supply and demand side are calculated in the different scenarios of power market and network conditions including mid and peak load of the network, changes of the mechanism of power market clearing and multilevel tariff of the demand. The level of social welfare in the proposed clearing method is compared with the results of the conventional clearing method of the power market, which is called the uniform pricing (UP) method. The proposed method is tested on ۲۴-bus IEEE RTS system for clearing the SRPM as an ancillary services market. Also, the problem of the proposed method is solved by a genetic algorithm. The results evidence that improvement of the level of profit of the power suppliers and consumers in the market and the demand-side management. The proposed method improves not only the level of social welfare of the market but also the load shifting, peak clipping and flexibly the load shape. Keywords—Social welfare; Sensitive loads; Ancillary services market; Demand-side management.