Evaluating the effects of demand response programs on life expectancy of distribution transformers

This paper presents a new method to investigate the effects of demand response programs on the life expectancy of distribution transformers. The proposed method has been applied on a realistic distribution network, and the results are evaluated under various models of the demand response program and different levels of tariffs. According to the results, distribution transformers’ life extension under various scenarios of applying demand response programs, in spite of differences among them, brings a great economic benefit. The results show a significant life extension in the interval of about 9 to 33 years. Also, this life extension brings a considerable benefit between 624.91$ to 821.669$, per year. However, the amount of obtained benefit considerably depends on the model of the demand response program and the level of tariffs. Besides, an economic analysis from both utility’s and customer’s perspectives is carried out in order to determine the optimal demand response model. To do this, an economic index is presented, and the best solution is determined by an Analytical Hierarchy Process so that it can satisfy both utilities and customers. As revealed by the results, the total annual benefits of the utility and customers are increased by 762.64$ and 73.85$.