Evaluating demand response in the presence of solar PV: Distribution grid perspective

Abstract

Flexible load operators are particularly interested in monetary transactions of demand response (DR). However, the integration of the DR scheme into the distribution network results in modification of power flows, which has to be managed by the distribution system operator (DSO). Hence, a coordination must be achieved between these two entities to comply with their individual constraints and objectives. With the integration of highly distributed and variable renewable energy, achieving this coordination becomes an even more important task. In this paper, an optimization-based generic model is presented for evaluating DR in the presence of solar photovoltaic (PV) and flexible loads. The integrated optimal pricing methodology is obtained from the developed framework, which takes into account operational conditions of the distribution grid and flexible loads. The economic and operational efficiency of the DR strategy is evaluated in the presence of (1) various pricing structures and (2) available network topologies. Case studies are performed using a validated building model and actual solar irradiation measurements on a benchmark distribution network. For comparison, liberalized market settings of the National Electricity Market of Singapore (NEMS) are adopted in this paper.