Employing Composite Demand Response Model in Microgrid Energy Management

Microgrids bring in various benefits to power systems such as improvement in reliability, security, efficiency and cost reduction. They are also capable of integrating Demand Response (DR). Therefore, precise modeling of DR is an important issue. In this paper, a composite DR model, based on price elasticity of demand and customer benefit function, is employed in the microgrid energy management. This model helps with more realistic and accurate modeling of DR by considering different groups of customers having different load profiles and energy use habituates. Regarding the energy management, two-stage stochastic programming is used for modeling the optimization problem. Various distributed energy resources along with uncertainties are also taken into account. Simulation results demonstrate that the proposed method helps with more accurate modeling of DR. It is also shown that the implementation of Time of Use (TOU) program resulted in about 10% decrease in peak demand, around 3% reduction in energy consumption and about 5% decrease in the total operational cost of the microgrid.