Abstract

With the application of distributed generation and the development of smart grid technology, micro-grid, an economic and stable power grid, tends to play an important role in the demand side management. Because micro-grid technology and demand response have been widely applied, what Demand Response actions can realize the economic operation of micro-grid has become an important issue for utilities. In this proposed work, operation optimization modeling for micro-grid is done considering distributed generation, environmental factors and demand response. The main contribution of this model is to optimize the cost in the context of considering demand response and system operation. The presented optimization model can reduce the operation cost of micro-grid without bringing discomfort to the users, thus increasing the consumption of clean energy effectively. Then, to solve this operational optimization problem, genetic algorithm is used to implement objective function and DR scheduling strategy. In addition, to validate the proposed model, it is employed on a smart micro-grid from Tianjin. The obtained numerical results clearly indicate the impact of demand response on economic operation of micro-grid and development of distributed generation. Besides, a sensitivity analysis on the natural gas price is implemented according to the situation of China, and the result shows that the natural gas price has a great influence on the operation cost of the micro-grid and effect of demand response.

Highlights

  • With the energy crisis and environmental crisis becoming increasingly serious, distributed generation, as one of the main forms of renewable energy power generation, plays an important role in the development and construction of smart grid

  • The micro-grid with distributed generation can be connected with external power grid and has the ability to operate in off-grid independently

  • With the development of smart grid technology, demand response technology is widely used in micro-grid, which can improve the utilization level of renewable energy, and it greatly helps perfect the operation state of the power, that is economy, stability and safety

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Summary

Introduction

With the energy crisis and environmental crisis becoming increasingly serious, distributed generation, as one of the main forms of renewable energy power generation, plays an important role in the development and construction of smart grid. As discussed in References [3,4], micro-grid is an efficient supplement of bulk power grid and a significant component of intelligent power grid. It has broad application prospects in commercial region, urban region and remote region. Smart grid is a new type of grid which integrates renewable energy power generation technology, energy management system (EMS) and transmission and distribution infrastructure. It improves the efficiency of clean energy utilization, and strengthens the security and reliability of the power grid. It can reduce the power consumption and the impact on the environment effectively [5,6,7]

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