A Novel Hierarchical Demand Response Strategy for Residential Microgrid with Time-Varying Price

Abstract

With the increasing proportion of distributed energy resources (DER) penetrated into the distribution power systems, Microgrids are widely used in the operation of power system. Renewable energy generation is known to be uncertain and volatile. Incentive-Based Demand Response (IBDR) is a good option to reduce the effect of this drawbacks because it has better timeliness and lower cost than other method. In this paper, a versatile hierarchical demand response strategy is proposed. With the determination of hierarchical incentive coefficients and the corresponding response quantities, the rebound effect considered dynamic DR decision-making strategy is established to optimize the total costs of residents. In order to verify the effectiveness of the strategy in cost saving, Monte Carlo algorithm is used for verification, where the optimization rate under the fluctuant price and stochastic power vacancy is calculated. Besides, two types of participating users were considered in the response results, and the confidence intervals for the response quantities under different price were calculated. The result shows the effectiveness of this strategy in reducing cost while the deficiency of DER occurs.