Optimal Coordination of Aggregated Hydro-Storage with Residential Demand Response in Highly Renewable Generation Power System: The Case Study of Finland

Current energy policy-driven targets have led to increasing deployment of renewable energy sources in electrical grids. However, due to the limited flexibility of current power systems, the rapidly growing number of installations of renewable energy systems has resulted in rising levels of generation curtailments. This paper probes the benefits of simultaneously coordinating aggregated hydro-reservoir storage with residential demand response (DR) for mitigating both load and generation curtailments in highly renewable generation power systems. DR services are provided by electric water heaters, thermal storages, electric vehicles, and heating, ventilation and air-conditioning (HVAC) loads. Accordingly, an optimization model is presented to minimize the mismatch between demand and supply in the Finnish power system. The model considers proportions of base-load generation comprising nuclear, and combined heat and power (CHP) plants (both CHP-city and CHP-industry), as well as future penetration scenarios of solar and wind power that are constructed, reflecting the present generation structure in Finland. The findings show that DR coordinated with hydropower is an efficient curtailment mitigation tool given the uncertainty in renewable generation. A comprehensive sensitivity analysis is also carried out to depict how higher penetration can reduce carbon emissions from electricity co-generation in the near future.