Economic Benefits of Energy Storage and Price-aware Demand Response for Future Smart Cities

Abstract

As new goals were set in terms of reliability and sustainability in urban power grids, demand response (DR) programs have gained remarkable attention for their benefits offered to both grid and customers. However, given the limited possibilities of implementing these services, the energy storage systems (ESSs) can be important tools for increasing the flexibility of electrical systems, allowing also the high penetration of renewable sources. The scope of this work is to analyze the impact of optimal operation of ESS together with the deployment of different types of demand side management (DSM) in Smart City context, considering the presence of local renewable energy sources (RESs). In this paper, a scheduling optimization scheme for an urban distribution network is presented, aiming to reduce the total operation cost. In this regard, a bi-objective model has been developed, that determines the balance between the global operational cost and the total load curtailment provided by the DR programs, while satisfying the technological constraints of the ESS and the power grid.