Optimisation of deviation settlement charges using residential demand response under frequency-linked pricing environment

Nowadays, demand response (DR) is used to modify the real-time load curve either directly through incentive-based centralised control or indirectly through inducing a particular load pattern by time-varying pricing schemes. Various DR schemes are available which encourage the participation of industrial, commercial and residential consumers in system operation. This study investigates the potential of residential consumers' DR participation in reducing Deviation Settlement Charge (DSC) under frequency-linked pricing environment. An incentive-based DR model for household devices by categorising them into shiftable and interruptible devices; including customer-side Battery Energy Storage System has been presented. A particular category of devices participates in a centrally initiated DR program depending upon the real-time grid frequency. The simulations are carried out on a realistic system of Indian distribution utility having a large percentage of residential consumers. It has been observed that the residential community DR participation reduces the DSCs substantially under real-time frequency conditions.