Designing of A Novel Energy Management System for CHP-based Industrial Microgrids Including Generation Scheduling and Demand Response

Energy management systems (EMSs) are essential tools for efficient, reliable, and cost effective operation of a Microgrid (MG) with different energy resources. They optimally schedule MG’s operation considering electrical and thermal loads simultaneously. In this paper, an EMS is proposed to minimize operational cost of an industrial MG. Cost function of the MG operation is formulated using short-term generation scheduling for DGs –generally CHP type- and demand response (DR). To effectively address the existing uncertainty in forecasted load demand and day-ahead energy market prices, the proposed approach is formulated in the form of a scenario-based stochastic energy management problem. The DR program is modelled based on various load shifting contracts, from MG operator perspective. Additionally, both islanded and grid-tied operation of the MG is handled within the same framework. To demonstrate the effectiveness of the proposed method, modified IEEE 18-bus test system including 12 DGs is adapted. Simulation results prove the effectiveness of the proposed method in optimal cost-effective management of the MG at hand.