Modeling the Effects of Demand Response on Generation Expansion Planning in Restructured Power Systems

Demand response is becoming a promising subject in operation of restructured power systems. As a result, recently more attention is paid to demand response programs. Customers can contribute in operation of power systems by deployment demand response. The growth of customers’ participation in such programs may affect planning of power systems. Therefore, it seems necessary to consider the effects of demand response in planning approaches. In this paper, the impact of demand responsiveness on decision making in generation expansion planning is modeled. Then, avoidance or deferment in installation of new generating units is comprehensively investigated and evaluated by introducing a new simple index. In addition, changes in investment cost and total cost paid by customers are investigated. The effects of demand responsiveness are studied from both the customers’ and generation companies (Gencos) points of view. The proposed model has been applied to modified IEEE 30-bus system and the results are discussed.