Mechanism Design for Participation of Demand Response in China Power Market

Abstract At present, with the rapid development of demand response in China, various market players such as electric vehicles, energy storage, virtual power plants, and load aggregators are constantly enriched. However, due to the imperfect market-oriented trading mechanism, the potential and enthusiasm of demand response have not been fully released. With the accelerated construction of China’s power market, various trading mechanisms such as spot market and ancillary services market have gradually improved. Based on the development of China’s power market, this paper designs a market-based transaction mechanism for demand response, and proposes a future development path for demand response. In the end, the subsidy for demand response development in China is estimated, which supports the market-oriented participation path of demand response in China’s power market.