Incentive Price-Based Demand Response in Active Distribution Grids

Integration of PV power generation systems at distribution grids, especially at low-voltage (LV) grids, brings in operational challenges for distribution system operators (DSOs). These challenges include grid over-voltages and overloading of cables during peak PV power production. Battery energy storage systems (BESS) are being installed alongside PV systems by customers for smart home energy management. This paper investigates the utilization of those BESS by DSOs for maintaining the grid voltages within limits. In this context, an incentive price based demand response (IDR) method is proposed for indirect control of charging/discharging power of the BESS according to the grid voltage conditions. It is shown that the proposed IDR method, which relies on a distributed computing application, is able to maintain the grid voltages within limits. The advantage of the proposed distributed implementation is that the DSOs can compute and communicate the incentive prices thereby encouraging customers to actively participate in the demand response program. An iterative distributed algorithm is used to compute the incentive prices of individual BESS to minimize the costs of net power consumption of the customer. The proposed IDR method is tested by conducting simulation studies on the model of a Danish LV grid for few study cases. The simulation results show that by using the proposed method for the control of BESS, node voltages are maintained within limits as well as the costs of net power consumption of BESS owners are minimized.