Effect of Changes in Incentives and Penalties on Interruptible/Curtailable Demand Response Program in Microgrid Operation

In recent years, demand response programs have attracted attentions for reducing network peak. Demand Response (DR) is the variation of energy consumption by customers in response to incentives, aiming to reduce consumption at peak hours. In general, DR methods might be based on price or incentive; this paper studies Interruptible/Curtailable (I/C) Demand Response Program. In this paper, the effect of changes in incentives and penalties on the implementation of I/C service on the microgrid is studied considering different uncertainties. The microgrid studied in this paper can exchange power with the upstream network. Effect of implementing I/C service in different modes on operation cost, customer profit, load factor, and peak reduction is evaluated in this paper. To prove the effectiveness of the presented method, this model is implemented on an 11-bus microgrid in a 24-hour period, and the results are investigated.