A Microgrid Energy Management System with Demand Response for Providing Grid Peak Shaving

A microgrid that consists of distributed energy sources, such as micro turbines, wind turbines, fuel cells, and photovoltaic panels, storage devices and a group of radial load feeders are quickly rising in popularity in recent years. Because there are various controllable units in a microgrid, it has the potential to provide ancillary services (A/Ss) for the grid in the grid-connected mode. This article proposes a novel microgrid energy management strategy with demand response to provide peak shaving for the grid by using the peak-time rebate scheme. Under this scheme, various controllable units, such as controllable loads, battery storage, and diesel generators, participate voluntarily in the demand-response program to achieve maximum profit for the microgrid, so the microgrid can respond actively to the grid. The optimal energy management for the microgrid is achieved under this scheme. In addition, the main grid can benefit from the scheme with a lower cost compared with other traditional peak-shaving programs. Various incentive rewards of the peak-time rebate and demand-response levels of the controllable loads are discussed in the peak-time rebate scheme. The results demonstrate that the peak power of the grid tie-line is shaved markedly while achieving optimal energy management.