Frequency Control by Tariff Regulation: (A comparison between the MPC and Tariff Modification)

Considering the notable share of the residential sector in the electricity demand market along with the renewables growth, potential impacts of the renewables on the stability and operation of the power grid should be studied. In this paper, we develop an optimization equation to investigate the effect of the electricity tariff on a small size customer's load profile in the presence of the renewables. The optimization is applied to 30 percent of the residential customers in a microgrid. The effect of renewables' integration under current and modified tariffs are studied on the frequency of a small size microgrid. The outcome of the frequency deviation under this modified tariff is compared to the frequency control results using a model predictive control approach. Results show that the tariff modification can be considered as a promising microgrid frequency control along with other control approaches.