SUMMARY
The future of power systems known as smart grids is expected to involve an increasing level ofintelligence and incorporation of new information and communication technologies in everyaspect of the power grid. Demand response resources and gridable vehicle are two interestingprograms which can be utilized in the smart grid environment. Demand response resources canbe used as a demand side virtual power plant (resource) to enhance the security and reliabilityof utility and have the potential to offer substantial benefits in the form of improved economicefficiency in wholesale electricity markets. An economic model of incentive responsive loadsis modelled based on price elasticity of demand and customers’ benefit function. On the otherhand, a gridable vehicle can be used as a small portable power plant to improve the reliabilityas well as security of the power system.This paper formulates a mixed-integer programming approach to solve the unit commitmentproblem with demand response resources and gridable vehicles. The objective function of theunit commitment problem has been modified to incorporate demand response resources andgridable vehicles. The proposed method is conducted on the conventional 10-unit test systemto illustrate the impacts of smart grid environment on the unit commitment problem. Moreoverthe benefits of implementing demand response resources and gridable vehicle in electricitymarkets are demonstrated.