Strategy for demand side management effectiveness assessment via a stochastic risk‐based bidding approach in a multi‐energy microgrid containing combined cooling, heat and power and photovoltaic units

Abstract

Abstract This paper proposes an efficient risk‐based infrastructure management approach for a multi‐energy microgrid to assess the effectiveness of demand‐side management (DSM) through a stochastic strategy. The studied microgrid consists of photovoltaic and combined cooling, heat and power as the energy generation units and load aggregator with the aim of DSM. Based on this structure, day‐ahead operational scheduling is investigated for the microgrid in different scenarios in both summer and winter seasons. The risk consideration is also performed in the bidding procedure dealing with different scenarios and variable prices and probabilities. In this study, the conditional value at risk index is considered to assess the amount of risk and is also studied from two perspectives. In the first case, the level of risk acceptable to the investor, the load aggregator, is selected, and its impact on the day‐ahead scheduling is examined. In the second case, the effect of different levels of risk‐taking and their importance on the scheduling procedure are examined. The main purpose is to show the shortcomings of the traditional DSM method when load management is done for private companies with a certain level of risk and prepare the ground for future studies to solve them.