Optimal power allocation for residential network in islanded microgrid using capacity market demand response approach

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This paper proposes a new demand response algorithm for load shedding and direct load control in smart homes with the goal of lowering peak-to-average ratios and enhancing power balance. The suggested algorithm makes use of two-way communication between distribution agents and smart homes (customers) to provide real-time load control, calculate percentage reductions, and produce distributed load consumption factors. An agent-based residential distribution network with four customers who owned smart appliances was modeled in MATLAB/SIMULINK to validate the technique. The findings show that the residential network is capable of reacting swiftly to supply changes and managing the grid's power balance through distributed load reduction, load shifting, and/or load adjustment, avoiding or limiting load shedding in the event of supply shortages.