The optimal operation and coordination of distributed generation (DG) sources and demand response (DR) programs help to minimize the operating cost of microgrids along with other mutual benefits. The model is developed, and the multiobjective problem subjected to the set of constraints is solved by using the modified elephant herd optimization (MEHO) technique in this work. The expected output of the model is the optimal generation scheduling plan of both the dispatchable and non-dispatchable DG and optimized cost for the isolated microgrid operation. The other objectives related to the environmental aspects and reliability are also considered for optimization. DG operation is coordinated with the day ahead DR programs to minimize the costs while satisfying the operation limits of the DG sources and consumer demand. The novelty of the work lies in finding the optimal solution considering the multiobjective for optimal DG operation and analyzing the impact of different types of DR programs on microgrid operation by the MEHO technique. The effectiveness of the proposed model and validity of the algorithm is further tested on a 14 bus microgrid benchmark system. Through simulation and optimization results it is observed that the proposed algorithm has less computational time and better accuracy.
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