Droop parameter-based economic dispatch for islanded microgrid considering demand response

Abstract

The droop parameter setting of the distributed generator (DG) has an essential role in islanded microgrid (MG) systems. This paper presents droop-based economic load dispatch (ELD) in an islanded MG. In this approach, the Power–frequency (P–f) droop characteristic of DG is integrated into its incremental cost, which is the derivative of the cost function of DG. The optimisation problem is formulated by considering the standard deviations of the incremental costs of DGs. Under steady-state conditions, DGs operate at a single frequency and the P–f droop-based ELD ensures that the incremental costs of DGs are equal, minimising the overall cost of active power generation, following the equal incremental cost principle. Furthermore, an incentive-based demand response (DR) programme is integrated into the system to maximise the utility benefit function by incentivising customers for power curtailment. The results exhibit significant power curtailment during peak load hours, indicating the effectiveness of the DR programme. The proposed combined mathematical model is applied to the modified 33-bus islanded MG and solved using basic particle swarm optimisation. It calculates optimal droop parameters for a day-ahead scenario and emphasises the efficiency benefits of optimised droop settings and the integration of DR in islanded MGs.