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This paper evaluates the effect assessment of demand respond (DR) programs on nodal prices considering customers' electricity contracts by differentiating multiple types of classes based on the desired risk level, n-1 and n-2 element outage. Load elasticity information reported in demand response projects is adopted to evaluate the dispatchable load reduction due to dynamic pricing.
Electricity deregulation makes it more feasible to apply differential rates across customers. Dynamic prices can be used to reflect the changes in marginal energy costs of a power system. Some dynamic pricing pilot projects reveal that dynamic prices can actually reduce or shift electricity usage. However, system-load peaks and local-area load peaks could occur at different times. When both peaks...
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