Volume 58

A credit-based incentive mechanism for electrolytic aluminum enterprise participation in electricity market demand response Chang Xu, Xiaolong Jin, Hongjie Jia, Yunfei Mu, Xiaodan Yu, Wanxin Tang, Ruijia Jiang

Abstract

With the growth of renewable energy installed capacity, power systems urgently require flexible resources to participate in demand response, and electrolytic aluminum enterprises possess excellent load regulation potential. However, traditional demand response mechanisms suffer from poor execution effectiveness and singular incentives, making it difficult to fully mobilize enterprise participation enthusiasm. This paper establishes a comprehensive decision-making model for electrolytic aluminum enterprise participation in electricity markets to provide demand response. First, a user credit evaluation model based on improved subscription performance indicators is proposed, and a subsidy mechanism combining credit incentives with segmented assessment is constructed, linking credit scores with subsidy prices to form positive incentives. Then, considering production stability, an electrolytic aluminum load model incorporating power, temperature, and daily production constraints is established. Finally, case study analysis demonstrates that after adopting the proposed method, the electrolytic aluminum enterprise’s credit value increases by 22.3% and overall revenue grows by 24.6%, validating the effectiveness of the proposed model.

Keywords electrolytic aluminum load, demand response, high energy-intensive industry, flexibility resource