A Demand Response Mechanism for Residential Consumers Based on Power-score Incentive

Since China is still in the early stage of electricity market reform, some mature demand response (DR) mechanisms cannot be applied to China's electricity market. Based on the consumer loyalty program of the study of marketing, an incentive-based demand response (IBDR) mechanism for residential consumers is presented, which is named as score-based incentive demand response (SIDR). A bilevel SIDR model is built to optimize the profit of an electricity retailer considering active demand response behaviors. An optimal demand response model for residential consumers is presented to describe different behaviors of the residents with power-score and monetary incentives, considering resident differences and psychological accounts. Case studies demonstrate the effectiveness of SIDR for enhancing the profit of electricity retailers.