Optimal energy management in a microgrid applying renewable sources and demand response

In this paper we performed optimal energy management of a microgrid which is connected to grid. The sources which have been applied in this investigation are diesel, wind and photovoltaic power sources. We have incorporated an incentive based demand response program, considering penalty factors into the demand response, for a grid connected microgrid energy management. While maximizing microgrid operator s demand response benefit, we have minimized the fuel cost for conventional generators and the transfer cost of transferable power. The aforementioned strategy has been adopted as optimal dispatch strategy regarding satisfying the load demand constraints together with other constraints. We have applied two case studies. In first case study the production part is consists of a PV and wind generator, three conventional generators, and the consumption part consists of three rural customers. The second case study is a larger microgrid in order to test the validity of the proposed method. Results show that applying incentive based demand response program considering penalty factors for a grid connected microgrid in both case studies in addition to decreasing grid relieving amounts of energy, introduces optimality at both the supply and demand spectrum of the grid.