Maximizing social welfare in micro-grids to provide an smooth daily load profile using nonlinear programing at scheduled operation

Abstract

Micro-grids are consisted of some interconnected networks such as distributed energy systems (resources and Loads) which are able to operate in gird connected and islanding modes. According to different loads in terms of feeding priority, consumers can help Micro-grid control center (MGCC) to do their best optimized scheduled operations. Then it could provide power for critical loads by controlling interruptible loads or displacement of load at different prices . Demand response (DR) plays an important role at electricity market in order to balance power generation and demand level required. Overall consumer pricing can be very useful in reduction of the operating costs, especially when market prices are high. In addition, by using this method, consumers can reduce their payment for less important loads. In this paper, the optimal operation of micro-grid in presence of demand response will be investigated in order to increase social welfare and flattening the load curve at an acceptable level. Multi-objective optimization problem will be solved by Epsilon limitation method with nonlinear programming (NLP) using General Algebraic Model System (GAMS) software package. The proposed algorithm will be implemented on a 17 bus micro-grid. The results indicate that proposed algorithm has ability to improve of micro-grid performance in scheduled operations.