The Impact of Demand Response Programs on Reducing the Emissions and Cost of A Neighborhood Home Microgrid

Abstract

The desire to increase energy efficiency and reliability of power grids, along with the need for reducing carbon emissions has led to increasing the utilization of Home Micro-grids (H-MGs). In this context, the issue of economic emission dispatch is worthy of consideration, with a view to controlling generation costs and reducing environmental pollution. This paper presents a multi-objective energy management system, with a structure based on demand response (DR) and dynamic pricing (DP). The proposed energy management system (EMS), in addition to decreasing the market clearing price (MCP) and increasing producer profits, has focused on reducing the level of generation units emissions, as well as enhancing utilization of renewable energy units through the DR programs. As a consequence of the nonlinear and discrete nature of the H-MGs, metaheuristic algorithms are applied to find the best possible solution. Moreover, due to the presence of generation units, the Taguchi orthogonal array testing (TOAT) method has been utilized to investigate the uncertainty regarding generation units. In the problem being considered, each H-MG interacts with each other and can negotiate based on their own strategies (reduction of cost or pollution). The obtained results indicate the efficiency of the proposed algorithm, a decrease in emissions and an increase in the profit achieved by each H-MG, by 37% and 10%, respectively.

Keywords

• home microgrid
• demand side management
• demand response
• emission reduction