Microgrids: A Solution Towards Implementing Demand Response Programs

This paper presents the feasibility and design of a Microgrid (MG) for Demand Response (DR), demand peak shaving, and energy arbitrage using a real-world test case, located in Texas. The real-world study MG consisted of natural gas generators and a Battery Energy Storage System (BESS) as principal Distributed Energy Resources (DERs). HOMER Pro® software was used as a simulation test bed to conduct techno-economical assessment of the considered MG system. The MG's preliminary design involved sizing of the DERs accounting for the current and prospective loading conditions in that MG. Sensitivity analysis was performed to identify the most economical MG design that will lead to the lowest costs and highest cost savings. Obtained results from these simulations are discussed in the paper.