Abstract
Integration of demand response programs in microgrids can be beneficial for both the microgrid owners and the consumers. The demand response programs are generally triggered by market price signals to reduce the peak load demand. However, during islanded mode, due to the absence of connection with the utility grid, the market price signals are not available. Therefore, in this study, we have proposed a distributed demand response program for an islanded multi-microgrid network, which is not triggered by market price signals. The proposed distributed demand response program is based on welfare maximization of the network. Based on the welfare function of individual microgrids, the optimal power is allocated to the microgrids of the network in two steps. In the first step, the total surplus power and shortage power of the network is determined in a distributed way by using the local surplus/shortage information of each microgrid, which is computed after local optimization. In the second step, the total surplus of the network is allocated to the microgrids having shortage power based on their welfare functions. Finally, the allocated power amount and the initial shortage amount in the microgrid is used to determine the amount of load to be curtailed. Diffusion strategy is used in both the first and the second steps and the performance of the proposed method is compared with the widely used consensus method. Simulation results have proved the effectiveness of the proposed method for realizing distributed demand response for islanded microgrid networks.
Highlights
Demand response (DR) programs encourage consumers to reduce their electricity demands when required
We have considered two different cases in order to illustrate the effectiveness of the is significantly lower as compared to other microgrids in the network
2), the total information of surplus and shortage power in the network is determined first, followed microgrids is not significant, whereas in the second case, shortage power in one microgrid is by the optimal power allocation to microgrids with shortage power
Summary
Demand response (DR) programs encourage consumers to reduce their electricity demands when required. This helps energy consumers to adjust their energy consumption in response to the variations in electricity prices and incentives offered by utilities, resulting in bill reduction. DR helps in regulating the load at peak hours and during system contingencies [1,2]. It can help to avoid the need for building new power plants. It can help in enhancing the utilization of renewables by adjusting loads and improving system reliability [3]. DR can provide economic assistance to both consumers and suppliers [3,4]. The DR problem has been an active research area in recent years and various methods have been suggested for its implementation [1,5,6]
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