This paper investigates the influence of price responsive demand shifting bidding on congestion and locational marginal prices in pool-based day-ahead electricity markets. The market dispatch problem of the pool-based day-ahead electricity market is formulated as to maximize the social welfare of market participants subject to operational constraints given by real and reactive power balance equations, and security constraints in the form of apparent power flow limits over the congested lines. The social welfare objective function of the day-ahead market dispatch problem maximizes the benefit of distribution companies and other bulk consumers based on their price responsive demand shifting bids and minimizes the real and reactive power generation cost of generation companies. The price responsive demand shifting bidding mechanism, which has been recently introduced in the literature, is able to shift the price responsive demand from the periods of high price to the periods of low price in day-ahead electricity markets. The comparisons of the price responsive demand shifting bids with conventional price responsive and price taking bids are presented by solving hourly market dispatch problems on five-bus, IEEE 30-bus, realistic UP 75-bus Indian, and IEEE 118-bus systems for 24-h scheduling period. It has been demonstrated that the proposed approach leads to reduction in congestion and locational marginal prices as compared to price responsive and price taking bids and meets the energy consumption targets of distribution companies/bulk consumers.Index Terms-Congestion management, locational marginal price, price responsive demand shifting bidding, social welfare.
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