Demand Response Design and Use Based on Network Locational Marginal Prices

Hugo Morais, Pedro Faria, Zita Vale

    Research output: Contribution to journalJournal articleResearchpeer-review


    Power systems have been experiencing huge changes mainly due to the substantial increase of distributed generation (DG) and the operation in competitive environments. Virtual Power Players (VPP) can aggregate several players, namely a diversity of energy resources, including distributed generation (DG) based on several technologies, electric storage systems (ESS) and demand response (DR). Energy resources management gains an increasing relevance in this competitive context. This makes the DR use more interesting and flexible, giving place to a wide range of new opportunities. This paper proposes a methodology to support VPPs in the DR programs’ management, considering all the existing energy resources (generation and storage units) and the distribution network. The proposed method is based on locational marginal prices (LMP) values. The evaluation of the impact of using DR specific programs in the LMP values supports the manager decision concerning the DR use. The proposed method has been computationally implemented and its application is illustrated in this paper using a 33-bus network with intensive use of DG.
    Original languageEnglish
    JournalInternational Journal of Electrical Power & Energy Systems
    Pages (from-to)180–191
    Publication statusPublished - 2014


    • Demand response
    • Distributed generation
    • Load curtailment
    • Locational marginal price
    • Virtual power player


    Dive into the research topics of 'Demand Response Design and Use Based on Network Locational Marginal Prices'. Together they form a unique fingerprint.

    Cite this