Reliability modeling of demand response considering uncertainty of customer behavior

Demand response (DR) has been considered as a generation alternative to improve the reliability indices of the system and load point. However, when the demand resources scheduled in the DR market fail to result in demand reductions, it can potentially bring new problems associated with maintaining a reliable supply. In this paper, a reliability model of the demand resource is constructed considering customers' behaviors in the same form as conventional generation units, where the availability and unavailability are associated with the simple two-state model. The reliability model is generalized by a multi-state model. In the integrated power market with DR, market players provide the demand reduction and generation, which are represented by an equivalent multi-state demand response and generation, respectively. The reliability indices of the system and load point are evaluated using the optimal power flow by minimizing the summation of load curtailments with various constraints.