CVaR-based retail electricity pricing in day-ahead scheduling of microgrids

One of the most important methods for implementing demand response (DR) schemes is to allocate time-varying prices power by consumers. Indeed, effective implementation DR programs passes from a successful pricing way retail electricity. However, massive influence renewable energy sources with unpredictable generation in today’s systems such as Micro-grids has made any planning encounter serious challenges. Therefore, this paper, new electricity method been proposed reduce effects risk resulting uncertain and wholesale market’s hourly estimated prices. To end, CVaR (Conditional Value at Risk) optimization framework used determine next day’s management Micro-grid Simulation results demonstrate that use risk-averse conditions, comparison non-risk lessening standard deviation optimal expected cost. In more detail, cost decreased 29.94% 24.63%, respectively. Moreover, show 5.92% reduction peak value demand.