Risk-Based Two-Stage Stochastic Optimization Problem of Micro-Grid Operation with Renewables and Incentive-Based Demand Response Programs

Pouria Sheikhahmadi, Ramyar Mafakheri, Salah Bahramara, Maziar Yazdani Damavandi and João P. S. Catalão
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Pouria Sheikhahmadi: Department of Electrical and Computer Engineering, University of Kurdistan, Sanandaj 66131, Iran
Ramyar Mafakheri: Department of Electrical Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj 66131, Iran
Salah Bahramara: Department of Electrical Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj 66131, Iran
Maziar Yazdani Damavandi: C-MAST, University of Beira Interior, 6201-001 Covilhã, Portugal
João P. S. Catalão: C-MAST, University of Beira Interior, 6201-001 Covilhã, Portugal

Energies, 2018, vol. 11, issue 3, 1-17

Abstract: The operation problem of a micro-grid (MG) in grid-connected mode is an optimization one in which the main objective of the MG operator (MGO) is to minimize the operation cost with optimal scheduling of resources and optimal trading energy with the main grid. The MGO can use incentive-based demand response programs (DRPs) to pay an incentive to the consumers to change their demands in the peak hours. Moreover, the MGO forecasts the output power of renewable energy resources (RERs) and models their uncertainties in its problem. In this paper, the operation problem of an MGO is modeled as a risk-based two-stage stochastic optimization problem. To model the uncertainties of RERs, two-stage stochastic programming is considered and conditional value at risk (CVaR) index is used to manage the MGO’s risk-level. Moreover, the non-linear economic models of incentive-based DRPs are used by the MGO to change the peak load. The numerical studies are done to investigate the effect of incentive-based DRPs on the operation problem of the MGO. Moreover, to show the effect of the risk-averse parameter on MGO decisions, a sensitivity analysis is carried out.

Keywords: demand response programs; micro-grid; renewable energy resources; risk-management; two-stage stochastic programming (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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