Study of the Effect of Time-Based Rate Demand Response Programs on Stochastic Day-Ahead Energy and Reserve Scheduling in Islanded Residential Microgrids

In recent deregulated power systems, demand response (DR) has become one of the most cost-effective and efficient solutions for smoothing the load profile when the system is under stress. By participating in DR programs, customers are able to change their energy consumption habits in response to energy price changes and get incentives in return. In this paper, we study the effect of various time-based rate (TBR) programs on the stochastic day-ahead energy and reserve scheduling in residential islanded microgrids (MGs). An effective approach is presented to schedule both energy and reserve in presence of renewable energy resources (RESs) and electric vehicles (EVs). An economic model of responsive load is also proposed on the basis of elasticity factor to model the behavior of customers participating in various DR programs. A two-stage stochastic programming model is developed accordingly to minimize the expected cost of MG under different TBR programs. To verify the effectiveness and applicability of the proposed approach, a number of simulations are performed under different scenarios using real data; and the impact of TBR-DR actions on energy and reserve scheduling are studied and compared subsequently.