Even though smart meters have been widely used in power systems around the world

many consumers are still finding it hard to participate in demand response (DR) due to flat-rate retail pricing policy. To address this issue

this paper proposes a coupon-based demand response (CDR) scheme to achieve equivalent dynamic retail prices to inspire consumers' inherent elasticity. First

a security-constrained unit commitment optimization model is developed in the day-ahead market to obtain coupon rewards

which are then broadcast to consumers to motivate them to reschedule their power consumption behaviors. To evaluate the adjustment value of consumers' power consumption

a collective utility function is proposed to formulate the relationship between power quantity and coupon rewards. On this basis

the security-constrained economic dispatch model is developed in the intra-day market to reschedule generating units' output power according to real-time load demands and fluctuating renewable energies. After the operation interval

a settlement method is developed to quantify consumers' electricity fees and coupon benefits on a monthly basis. The proposed CDR scheme avoids real-time iterative bidding process and effectively decreases the difficulty of massive

small consumers participating in DR. The proposed CDR is implemented in a realistic DR project in China to verify consumers' energy cost and renewables' curtailment can both be decreased.