Demand Response Optimization MILP Framework for Microgrids with DERs

TL;DR

This paper introduces a MILP framework for demand response in microgrids with renewables, optimizing load management and cost savings while ensuring stability across various scenarios.

Contribution

It presents a novel MILP-based approach incorporating load classification and dynamic pricing for effective demand response in renewable-rich microgrids.

Findings

Peak load reduced by 10%

Energy costs decreased by up to 38%

Effective in high solar generation scenarios

Abstract

The integration of renewable energy sources in microgrids introduces significant operational challenges due to their intermittent nature and the mismatch between generation and demand patterns. Effective demand response (DR) strategies are crucial for maintaining system stability and economic efficiency, particularly in microgrids with high renewable penetration. This paper presents a comprehensive mixed-integer linear programming (MILP) framework for optimizing DR operations in a microgrid with solar generation and battery storage systems. The framework incorporates load classification, dynamic price thresholding, and multi-period coordination for optimal DR event scheduling. Analysis across seven distinct operational scenarios demonstrates consistent peak load reduction of 10\% while achieving energy cost savings ranging from 13.1\% to 38.0\%. The highest performance was observed in scenarios with high solar generation, where the framework achieved 38.0\% energy cost reduction through optimal coordination of renewable resources and DR actions. The results validate the framework's effectiveness in managing diverse operational challenges while maintaining system stability and economic efficiency.