Study On Interruptible Load Contracts By Applying Incentive And Insurance Mechanism

In electricity market, the participation of interruptible load as a demand response resource is of great significance to the improvement of system security and market efficiency as well as to energy conservation. The effective interruptible load management (ILM) not only depends on the true interruptible promise, but also lies on active response of interruptible load. So how to incentive and ensure the interruptible load participate in electricity market and enhance demand response becomes a key issue of ILM.On the issue, this paper bases on the analysis of practice status and obstacles of ILM, through introducing insurance theory into ILM, designs the interruptible load insurance, so as to establishes the incentive and insurance mechanism of interruptible load; then combining with the analysis of cost-benefit, develops the model and operation process of interruptible load contract which include the interruptible load insurance. Finally, the theoretical analysis of decision-making behavior of participants in the contract and the results of calculation example demonstrate that the interruptible load contract by applying incentive and insurance mechanism can induce the customers tell the truth and provide interruptible load reliably.