A stochastic self-scheduling program for compressed air energy storage (CAES) of renewable energy sources (RESs) based on a demand response mechanism

•Optimal stochastic energy management of renewable energy sources (RESs) is proposed.•The compressed air energy storage (CAES) besides RESs is used in the presence of DRP.•Determination charge and discharge of CAES in order to reduce the expected operation cost.•Moreover, demand response program (DRP) is proposed to minimize the operation cost.•The uncertainty modeling of input data are considered in the proposed stochastic framework. In this paper, a stochastic self-scheduling of renewable energy sources (RESs) considering compressed air energy storage (CAES) in the presence of a demand response program (DRP) is proposed. RESs include wind turbine (WT) and photovoltaic (PV) system. Other energy sources are thermal units and CAES. The time-of-use (TOU) rate of DRP is considered in this paper. This DRP shifts the percentage of load from the expensive period to the cheap one in order to flatten the load curve and minimize the operation cost, consequently. The proposed objective function includes minimizing the operation costs of thermal unit and CAES, considering technical and physical constraints. The proposed model is formulated as mixed integer linear programming (MILP) and it is been solved using General Algebraic Modeling System (GAMS) optimization package. Furthermore, CAES and DRP are incorporated in the stochastic self-scheduling problem by a decision maker to reduce the expected operation cost. Meanwhile, the uncertainty models of market price, load, wind speed, temperature and irradiance are considered in the formulation. Finally, to assess the effects of DRP and CAES on self-scheduling problem, four case studies are utilized, and significant results were obtained, which indicate the validity of the proposed stochastic program.