Co-optimization of demand response and interruptible load reserve offers for a price-making major consumer

  • Mahbubeh HabibianEmail author
  • Golbon Zakeri
  • Anthony Downward
  • Miguel F. Anjos
  • Michael Ferris
Original Paper


We study demand-side participation in an electricity market for an industrial consumer of electricity, with some flexibility to reduce demand, and capable of offering interruptible load reserve. Our consumer is a price maker, and the impact of its actions in the market is modelled via a bi-level optimization problem. We have extended a standard model for optimal strategic consumption, to the case where reserve offer curves need to be optimized simultaneously with consumption curves; our models provide intuition into this interaction. Furthermore, we provide tailor-made solution strategies for the resulting problems under uncertainty, and report numerical results of our implementation on instances over the full New Zealand network yielding a realistic and large problem set.


Demand response Bi-level optimization Decomposition methods Integer programming Stochastic optimization 

Supplementary material


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.University of AucklandAucklandNew Zealand
  2. 2.Polytechnique MontrealMontrealCanada
  3. 3.University of WisconsinMadisonUSA

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