Coordination of Load and Generation Sides to Reduce Peak Load and Improve Arbitrage of Smart Distribution Grid

Abstract

This paper proposes an approach to improve the system arbitrage and reduce peak load by managing both the generation and load sides simultaneously. The peak load reduction is achieved using a load control program, while the arbitrage is enhanced by minimizing the operating and emission costs. The load management and minimization of operating cost are combined in an optimization approach in a multi-objective framework. The storage battery is utilized to contribute in the shaving of the peak load and reducing the operating and emission cost, where the battery aging is taken into account in the proposed model. The management of load sides is considered as decision variables in the approach. A mixed-integer quadratic program is employed to formulate the optimization approach. The proposed approach is applied to a smart low-voltage distribution grid. The results show that the management of both the demand and generation sides reduces the operating and emission costs and improves the load factor of the system.