An Economic and Environmental Optimization Model in a Micro Grid with Demand Response

Abstract To accommodate the current energy system with the renewable energy source, the concept of micro grid (MG) has been developed. Using such systems, different advantage such as minimization of power loss, operating cost, and emission can be achieved. In this paper, the 24-hour power and heat based MG scheduling is investigated under environmental aspects and economic issues as bi-objective modelling in the presence of demand response (DR) program for decreasing greenhouse gas emission and system operation cost. The investigation of the MG contains energy storage system, boiler and combined heat and power (CHP). For solving the problem, first the Pareto optimal solutions have been obtained by the weighted-sum technique, then the fuzzy satisfying approach has been used to get optimal trade-off result. To confirm the performance of the method, the problem is solved in two-case to demonstrate the effects of DR on MG scheduling.