Optimal Scheduling of Isolated Microgrids With Hybrid Renewables and Energy Storage Systems Considering Demand Response

The integration of renewable energy sources and energy storage systems (ESSs) in microgrids has increased significantly in the last decades. Therefore, several methods have been developed to decrease the operating cost of such microgrids. In this paper, a new method considering the demand response has been developed to minimize the operating cost in microgrids integrated with renewables and ESSs. The demand response allows the operator and consumer to shift some of the load from the high-price periods to the low-price periods. In this case, the operating cost is minimized for operators and the bill prices decrease for consumers. The operating cost has decreased by 2.60% for a horizon of 24 hours and 3.72% for a horizon of one year. Also, there was a big reduction of the peak demand and standard deviation of the load profile of one year. The DR reduces the need to use the ESS to balance supply and demand. This results in increasing the ESS lifetime and leads to a big saving in ESS investment costs. The optimization problem has been solved using the mixed integer quadratically constrained programming (MIQCP) using the CPLEX solver in the General Algebraic Modeling System (GAMS)