Enabling demand response potentials for resilient microgrid design

Abstract

The future microgrids (MGs) hosting a multitude of uncertain and intermittent local renewable generation resources are anticipated needing fast and exible units on the generation side. However, demand response, as a load shaping tool, can alleviate this need. This paper proposes a model to consider demand response potential incorporated by timevarying prices in MG design studies. The model aims at maximizing profit of the MG owner while technical limits and constraints are adhered to. It also ensures that the designed MG is resilient to islanding events. To handle complexity of the model, Benders decomposition was used to decompose it into a master problem and two types of sub-problems. The master problem optimized binary variables indicating installing status of generating units and batteries. The first type of sub-problems optimized continuous variables and the second ensured the resilient operation of the MG against islanding events. In the model, the uncertainties associated with load and intermittent generation resources were captured via a scenario-based stochastic approach. Demand behavior in response to time-varying prices was modeled via price elasticity coeficients. Also, effectiveness of the proposed model was investigated through extensive numerical studies and sensitivity analyses.