Optimal operation of microgrid with photovoltaics and gas turbines in demand response

The development of smart grid and distributed energy resources makes it possible for the large number of distributed gas turbines and photovoltaics in cities to interact with the utility grid and provide ancillary services via different demand response programs. By implementing the two-part real-time pricing mechanism to encourage microgrid participation in demand response, this paper presents the optimization model of microgrid with multi-energy resources in price-based demand response program with the aim of net income maximization. The algorithm of sequential quadratic programming is applied to solve the problem. The effects of real-time pricing, state of charge and unit ratio on demand response are further discussed in detail. The simulation results indicate that the microgrid integrating photovoltaics with gas turbines demonstrates significant elasticity and flexibility in providing ancillary services through demand response.