Computing the cost of the demand response is an accounting exercise, done after 
the optimization (assuming you are using dispatchable loads as described in the 
manual).

    Ray


> On Jul 29, 2016, at 6:56 AM, Haroon Malik <[email protected]> wrote:
> 
> Hello Dr. Zimmerman,
> 
> 
> Regarding the cost of demand response, should this be added before the 
> optimization or after the optimization.
> 
> 
> Many thanks,
> 
> 
> Mohammad Haroon Malik
> 
> 
> From: [email protected] 
> <mailto:[email protected]> 
> <[email protected] 
> <mailto:[email protected]>> on behalf of Ray 
> Zimmerman <[email protected] <mailto:[email protected]>>
> Sent: 26 July 2016 14:55
> To: MATPOWER discussion forum
> Subject: Re: Demand Response
>  
> See Section 6.4.2 in the User’s Manual 
> <http://www.pserc.cornell.edu/matpower/docs/MATPOWER-manual-6.0b1.pdf> and 
> the load2disp() 
> <http://www.pserc.cornell.edu/matpower/docs/ref/matpower6.0b1/load2disp.html> 
> function.
> 
> When using dispatchable loads, as defined here, the objective function being 
> minimized is the negative of the net benefits (benefits to dispatchable loads 
> minus generation costs). Defining a dispatchable load with a marginal benefit 
> of $1000/MW is equivalent to saying the load has a $1000/MW cost of 
> curtailment. That is the OPF’s maximum net benefits solution will minimize 
> the cost of generation + the cost of demand response (load curtailment).
> 
> If you want to explicitly compute the cost of curtailment from the solved OPF 
> case, however, you will need to do it manually by extracting the quantity of 
> curtailment (difference between PG and PMIN for the dispatchable load) and 
> multiplying it by the cost of curtailment.
> 
>     Ray
> 
> 
> 
> 
>> On Jul 26, 2016, at 8:46 AM, Haroon Malik <[email protected] 
>> <mailto:[email protected]>> wrote:
>> 
>> Hello Dr. Zimmerman,
>> 
>> 
>> I would like to add the cost of demand response into the objective function, 
>> is it possible and if so how could I include this feature.
>> 
>> 
>> Many thanks for your time and response,
>> 
>> 
>> Mohammad Haroon Malik

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