Assessing the Value of Demand Response in Microgrids

Isaías Gomes, Rui Melicio and Victor M. F. Mendes
Additional contact information
Isaías Gomes: IDMEC, Instituto de Engenharia Mecânica, Universidade de Lisboa, 1049-001 Lisboa, Portugal
Rui Melicio: IDMEC, Instituto de Engenharia Mecânica, Universidade de Lisboa, 1049-001 Lisboa, Portugal
Victor M. F. Mendes: CISE, Electromechatronic Systems Research Centre, Universidade da Beira Interior, 6201-001 Covilhã, Portugal

Sustainability, 2021, vol. 13, issue 11, 1-16

Abstract: This paper presents a computer application to assist in decisions about sustainability enhancement due to the effect of shifting demand from less favorable periods to periods that are more convenient for the operation of a microgrid. Specifically, assessing how the decisions affect the economic participation of the aggregating agent of the microgrid bidding in an electricity day-ahead market. The aggregating agent must manage microturbines, wind systems, photovoltaic systems, energy storage systems, and loads, facing load uncertainty and further uncertainties due to the use of renewable sources of energy and participation in the day-ahead market. These uncertainties cannot be removed from the decision making, and, therefore, require proper formulation, and the proposed approach customizes a stochastic programming problem for this operation. Case studies show that under these uncertainties and the shifting of demand to convenient periods, there are opportunities to make decisions that lead to significant enhancements of the expected profit. These enhancements are due to better bidding in the day-ahead market and shifting energy consumption in periods of favorable market prices for exporting energy. Through the case studies it is concluded that the proposed approach is useful for the operation of a microgrid.

Keywords: microgrid; demand response; stochastic programming; energy management; renewable energy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.mdpi.com/2071-1050/13/11/5848/pdf (application/pdf)
https://www.mdpi.com/2071-1050/13/11/5848/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:11:p:5848-:d:560298

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().