Operation Optimization in a Smart Micro-Grid in the Presence of Distributed Generation and Demand Response

With the application of distributed generation and the development of smart grid technology, micro-grid, an economic and stable power grid, tends to play an important role in the demand side management. Because micro-grid technology and demand response have been widely applied, what Demand Response actions can realize the economic operation of micro-grid has become an important issue for utilities. In this proposed work, operation optimization modeling for micro-grid is done considering distributed generation, environmental factors and demand response. The main contribution of this model is to optimize the cost in the context of considering demand response and system operation. The presented optimization model can reduce the operation cost of micro-grid without bringing discomfort to the users, thus increasing the consumption of clean energy effectively. Then, to solve this operational optimization problem, genetic algorithm is used to implement objective function and DR scheduling strategy. In addition, to validate the proposed model, it is employed on a smart micro-grid from Tianjin. The obtained numerical results clearly indicate the impact of demand response on economic operation of micro-grid and development of distributed generation. Besides, a sensitivity analysis on the natural gas price is implemented according to the situation of China, and the result shows that the natural gas price has a great influence on the operation cost of the micro-grid and effect of demand response