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Integration of Optimal Time-of-Use Pricing in Stochastic Programming for Energy and Reserve Management in Smart Micro-grids

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Iranian Journal of Science and Technology, Transactions of Electrical Engineering Aims and scope Submit manuscript

Abstract

In this paper, the optimal operation problem of smart micro-grids integrated with the pricing of Time-of-Use (TOU) demand response (DR) program is modeled as a two-stage stochastic programming problem with the aim of minimizing the cost of MG operation and running TOU in the presence of renewable resources and incentive-based DR programs. Here, TOU as the most common type of time-based DR programs is implemented using a linear function based on the concept of self- and cross-price elasticity of load demand. In the presented model, the forecasting errors of generation of renewable resources are modeled by probability density functions. The operator of MG decides on two stages for optimal management of its network; the first stage refers to the operation of base condition of MG and the second one is pertaining to after the realization of different scenarios for generation of renewable resources. The base condition of MG refers to the situation in which the active power productions of renewables are equal to the predicted values. The proposed model is solved by Particle Swarm Optimization algorithm. A typical MG is employed to investigate and analyze the different features of the method. By varying the demand response potential of MG consumers, TOU tariffs are determined, and their impact on the results of energy and reserve cost as well as voltage and load profiles of MG are analyzed. Numerical results show the efficiency of DR in reducing costs as well as covering the uncertainty resulting from renewables.

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Authors and Affiliations

  1. Department of Electrical Engineering, Islamshahr Branch, Islamic Azad University, Tehran, Iran

    Mehdi Nikzad

  2. Department of Electrical Engineering, Arak University of Technology, Arak, Iran

    Abouzar Samimi

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  1. Mehdi Nikzad
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  2. Abouzar Samimi
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Correspondence to Abouzar Samimi.

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Nikzad, M., Samimi, A. Integration of Optimal Time-of-Use Pricing in Stochastic Programming for Energy and Reserve Management in Smart Micro-grids. Iran J Sci Technol Trans Electr Eng 44, 1449–1466 (2020). https://doi.org/10.1007/s40998-020-00342-4

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  • DOI: https://doi.org/10.1007/s40998-020-00342-4

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