Improving the benefits of demand response participation in facilities with distributed energy resources

Abstract Demand response has proven to be a distributed energy resource of great potential over the last decades for electrical systems operation. However, small or medium size facilities generally have a very limited ability to participate in demand response programs. When a facility includes several generation resources, energy storage systems, or even demand flexibility, the decision-making becomes considerably harder because of the amount of variables to be considered. This paper presents a method to facilitate end users' decision-making in demand response participation. The method consists of an algorithm that uses demand and generation forecasts and costs of the available resources. Depending on the energy to be reduced in a program, the algorithm obtains the optimal schedule and facilitates decision making, helping end users to decide when and how to participate. With this method, end users' capability to participate in these programs is clearly increased. In addition, the method is contrasted by simulations based on real programs developed at the Campus de Vera of the Universitat Politecnica de Valencia. The simulations carried out show that the developed method allows end users to take advantage of the potential of their facilities to provide demand response services and obtain the maximum possible benefit.