A Novel Hierarchical Demand Response Strategy for Residential Microgrid

Incentive-based demand response (IBDR) was considered as a feasible option to solve the sudden shortage of distributed energy resource in the microgrid. However, the current IBDR policies and strategies are not directly applicable to residents due to many defects. To this end, a versatile hierarchical IBDR strategy is proposed in this article. To ensure the effectiveness of IBDR in load reduction on critical period, clustering with demand response (DR) levels decision-making algorithm is proposed to obtain the reliable estimation of DR quantity. To enhance system reliability, a reliability constraint-based DR contingency management scheme is also proposed. Moreover, to avoid the additional costs cause by DR rebound effect, a systematic costs minimization algorithm is developed. To evaluate the performance of the proposed method, the actual case-based series testing was conducted. The proposed strategy is proved that is able to effectively reduce the overall cost of microgrid while the deficiency of DER occurs.