Smart microgrid energy and reserve scheduling with demand response using stochastic optimization

Demand side participation is one of the important resources that help the operator to schedule generation and consumption with lower cost and higher security. Customers can participate in both energy and reserve operational scheduling and earn benefit from reducing or shifting their consumption. In this paper, a novel stochastic energy and reserve scheduling method for a microgrid (MG) which considers various type of demand response (DR) programs is proposed. In the proposed approach, all types of customers such as residential, commercial and industrial ones can participate in demand response programs which will be considered in either energy or reserve scheduling. Also, the uncertainties related to renewable distributed generation are modeled by proper probability distribution functions and are managed by reserve provided by both DGs and loads. The proposed method was tested on a typical MG system comprising different type of loads and distributed generation units. The results demonstrate that the adoption of demand response programs can reduce total operation costs of a MG and determine a more efficient use of energy resources. © 2014 Elsevier Ltd. All rights reserved.