Real-Time Optimal Demand Response for Frequency Regulation in Smart µGrid Environment

Real-time demand response (DR) in smart μgrid has been shown to be an effective tool for frequency regulation with increased penetration of renewable energy resources into the grid. Since DR is recognized as an incentive or direct payment to the participants, it is consequently desired to minimize the cost of DR for the utility. This paper presents an optimal DR strategy for minimizing the cost of DR for the utility in smart grid era. The economic model developed by Pennsylvania/New Jersey/Maryland (PJM) utility in the USA is used on an IEEE 13-bus standard system. Simulation results verify the effectiveness of the proposed approach to minimize the cost of DR for the utility. It is also shown that the DR, with or without optimization, decreases the overall cost of frequency regulation for the utility compared to the conventional spinning reserve, without sacrificing system stability.

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