Flexible demand response in smart grid based Automatic Generation Control

In current scenario in electric power systems, customer participation of Demand Response in grid operations and management has been gaining importance in Smart Grid with the advent of information communication technology. In this paper an Automatic Generation Control (AGC) scheme that includes price based demand response scheme is proposed. The price based demand response scheme finds the optimal thermostat set point of the Thermostatically Controlled Load (TCL) for a change in price issued by Independent system operator for AGC. This paper provides a load model that includes demand response as a transfer function that provides the change in power consumed due to the price based demand response of aggregated TCLs using coupled Fokker-Planck equations. Thus the main work of this paper is the load modelling of power gain from the demand response of aggregated TCL units for AGC. Simulation results show that AGC in single area system with demand response improves system performance and leads to economic operation of the system as generators operate close to their fixed power loading.