Impact Analysis of Demand Response Intensity and Energy Storage Size on Operation of Networked Microgrids

Integration of demand response (DR) programs and battery energy storage system (BESS) in microgrids are beneficial for both microgrid owners and consumers. The intensity of DR programs and BESS size can alter the operation of microgrids. Meanwhile, the optimal size for BESS units is linked with the uncertainties associated with renewable energy sources and load variations. Similarly, the participation of enrolled customers in DR programs is also uncertain and, among various other factors, uncertainty in market prices is a major cause. Therefore, in this paper, the impact of DR program intensity and BESS size on the operation of networked microgrids is analyzed while considering the prevailing uncertainties. The uncertainties associated with forecast load values, output of renewable generators, and market price are realized via the robust optimization method. Robust optimization has the capability to provide immunity against the worst-case scenario, provided the uncertainties lie within the specified bounds. The worst-case scenario of the prevailing uncertainties is considered for evaluating the feasibility of the proposed method. The two representative categories of DR programs, i.e., price-based and incentive-based DR programs are considered. The impact of change in DR intensity and BESS size on operation cost of the microgrid network, external power trading, internal power transfer, load profile of the network, and state-of-charge (SOC) of battery energy storage system (BESS) units is analyzed. Simulation results are analyzed to determine the integration of favorable DR program and/or BESS units for different microgrid networks with diverse objectives.