Stochastic Frequency-Security Constrained Scheduling of a Microgrid Considering Price-Driven Demand Response

This paper proposes a two-stage stochastic model for optimal frequency-security constrained energy and reserve scheduling in an islanded residential microgrid (MG) with price-responsive loads. Based on this model, scheduling of the controllable units in both supply and demand sides is done in a way not only to maximize the expected profit of MG operator (MGO), but also to minimize the energy payments of customers. To study the effect of uncertain parameters and demand-side participation on system operating conditions, an AC-optimal power flow (AC-OPF) approach is also applied. The proposed stochastic optimization model is then applied to a typical islanded MG and its effectiveness is demonstrated through different scenarios. Simulation results show that participation of customers in price-driven demand response (DR) programs can reduce energy consumption cost of customers while improving the MG frequency response in steady state.