Smart Grid Operation in Presence of Priced Based and Incentive Based Responsive Demands and Renewable Energy Systems

Abstract

Distribution networks are constructed to deliver electricity from transmission systems to end-use consumers. In this way, smart grid is introduced to manage the system in a sustainable, reliable, and economical manner which demand response is one of the key integral parts of a smart grid. Demand response provides an opportunity for end-use consumers to modify their normal consumption pattern when electricity procurement prices are higher or the reliability of the system is jeopardized. The focus of this paper is on potential impacts of different demand response programs on the operation of power systems, especially on the operation of distribution networks that are studied here. The first goal of this paper is to quantify the potential benefits of demand response to the operation of distribution networks. The second goal of this paper is to extend the existing decision frameworks to consider demand response of load which lead to coordinate demand side potentials with distribution companies' technical and financial objectives thereby increasing their profit. The effectiveness of the extended models is demonstrated by simulating them on a real distribution system and illustrates technical and financial aspects improvement in the operation of the network when demand response potentials are realized by these models.