Demand response regulation modeling based on distribution system asset efficiency

In this paper, a new comprehensive model is represented to analyze the effect of demand response (DR) on the distribution system efficiency and the benefit of distribution companies (DISCOs). This paper defines the distribution system efficiency in view point of government and determines marginal cost of DR to realize governance efficiency. We use energy not supplied index to evaluate quality of services. The proposed model for the distribution system efficiency employs distribution indices called as efficiency indicators to calculate DISCOs' benefit and governance efficiency. Using the proposed model, the impacts of DR on efficiency of distribution system and benefit of DISCOs are analyzed using graph theory. The new model can help regulators make optimal decisions regarding DR programs. A real distribution system with about 200,000 populations is used to study the impacts of implementing DR programs on efficiency indicators.