Optimization of Distributed Energy Resources and Incentive Based Demand Response for Emission Reduction in Microgrid Systems

Abstract

Fossil fuel dependency in power generation, though essential for meeting energy needs, leads to harmful greenhouse gas emissions. This paper explores how integrating distributed energy resources (DERs) with incentive based demand response (IBDR) strategies in microgrids can help reduce emissions, offering a sustainable solution for cleaner energy systems. The first objective is to minimize emissions and grid operating costs by integrating DERs and applying IBDR strategies to reduce loads during peak periods, thereby enhancing grid efficiency. The second objective is to maximize grid utilities' profits while minimizing emission costs. The formulated model facilitates optimal load management, reducing operational costs and emissions-related expenses within the microgrid. The optimization of the proposed microgrid is framed as a quadratic programming problem over a 24-hour scheduling period, which was successfully solved. Simulation results validate the effectiveness and efficiency of the model, demonstrating its operational applicability in achieving emission reduction while maintaining system reliability and cost-effectiveness.