A hybrid demand response mechanism based on real-time incentive and real-time pricing

This paper proposes a hybrid demand response (DR) mechanism considering three types of participants: power grid operator (PGO), retailers and end users. Different from the traditional price-based or incentive-based methods, this combines real-time pricing incentive together to implement programs dispatched by PGO, i.e., PGO provides incentives set optimal prices users every 5 min. DR can better motivate participate providing them with monetary for load shifting. We use three-level Stackelberg game model proposed mechanism. The first determines rate minimize its cost, then decide electricity price maximize their profits, finally choose welfare. analytical solutions decisions participant are given. also propose distributed algorithm in practical application information asymmetry. simulation results verify advantages over mechanisms.