Optimal Coordination of Price-based Demand Response and Microturbine Dispatch in Microgrids

Distributed generation (DG) units such as small-scale wind turbines, solar photovoltaic (PV) panels and microturbines have been increasingly installed in microgrids. Since the renewable energy sources (RESs) such as PV systems have reverse-peak power generation, demand response methods have been widely used in the microgrids to achieve peak shaving. Considering DG and demand response, microgrids can be operated in a cost-efficient and secure way. By utilizing a price-based demand response (PBDR) method and dispatching microturbines, this paper develops a two-stage optimal coordination method for microgrids. In a day-ahead stage, the PBDR for the whole day is optimized with consideration of the dispatch of the microturbine power generation. Then, in an intraday stage, the microturbines are dispatched to follow the RES variations. The proposed method is tested on a 33-bus microgrid and the simulation results demonstrate high efficiency in operating cost reduction.