The Cost Based DSM Methods in Microgrids with DG Sources

Abstract

The rapid development of Microgrid as part of the general power supply system states the problem of choosing the optimal technologies for its composition. The cost based approach is presented in this paper. It allows to make optimal choice for the Microgrid structure depending only on the local prices on the market. The demand side management concept is used to optimize the behavior of Microgrids in the electricity market. To do this time-of-use tariffs are presented as highly effective demand-response programs for Microgrids with DG sources. Tariffs that change over time allow to respond to demand in the market. Such tariffs stimulate load regulation, both manually and automatically, which allows consumers to save on electricity costs, while enjoying the benefits of the system. The purpose of this paper is to present cost based DSM methods for the Microgrids with Distributed Generation sources to optimize their operation.