IJARAS Effects of Time-Of-Use Demand Response Programs Based on Optimal Operation of a MicroGrid in Market Environment

This paper focuses on optimal operation schedule of a Microgrid that is interconnected to the power grid. We develop a mathematical model to compute the optimal operation schedule that embodies demand response. Wind turbine, photovoltaic, fuel cell and micro turbine are considered as the only sources along with energy storage system (ESS) for supplying electricity to the micro-grid. In grid-connected mode, the economic dispatch of ESS achieves peak load shaving and maximum economy. The main objective is to meet the forecasted demand by optimal scheduling of available and forecasted generation sources and reduce total cost. The problem is formulated as mixed Integer non-linear (MINLP) optimization problem and solved using GAMS software. Experimental results show that the proposed model exploits the demand elasticity and significantly reduces the total operation cost.