Executive SummaryThe constant increase in the demand of power across the world due to increase in population and
utilities is creating the need for the power producers to generate addition peak time power at very
high costs and huge transmission losses. This is leading to huge economic losses not only on the
consumer end but also on the provider end. Although, this problem has been approached from
many angles and a holistic approach is required in order to present a sustainable and feasible
solution. As part of the project we are aiming to optimize both the production and consumption
end by proposing an integrated response system paired with renewable energy generation. The
project will have a two-pronged approach for the optimization of the electricity generation and
consumption within a microgrid scenario. The significant reduction in the price of Solar Panels
has increased the viability and usage of Photo voltaic (PV)’s as a medium of power generation for
residential purposes, and this has given rise to a new dynamic with the power ecosystem by
introducing factors like feed in tariffs. Further optimization in terms of storage and relying on
intrinsic storage of the thermostatic appliances is bound to have positive results. On the other the
demand for power can be controlled by employing effective demand response strategies like Real
Time Pricing (RTP) and Time of Use pricing. The proposal is to analyse the impact of
implementing demand response strategies in a microgrid which has a renewable energy system in
addition to the conventional power supply. Multiple scenarios are to be designed which will bring
different variables into play and demonstrate the cost benefit of implementing this integrated
approach.Acknowledgements
1. Table of ContentsExecutive Summary
Acknowledgments
2. List of Illustrations
3. Statement of Problem
4. Introduction
5. Background
6. Literature Review
7. Methodology
8. Results/Discussion
9. Project Management:
10. Legal/ Ethical
11. Conclusion
12. References2. List of Illustrations3. Statement of ProblemThe different patterns in the consumption of power through a day causes a huge variation in the
demand- supply ratio through the day. This problem has been further alleviated by the introduction
of solar energy as it produces the maximum proportion of energy in the low demand region and is
not capable of producing energy during the peak demand, thereby putting an unreasonable sudden
load on the electrical grid [10]. The demand of electricity is stable through most of the morning
and afternoon as most of the heating and lighting appliances are not run during this time.
Additionally, the solar generation system produces a significant amount of energy through the day
as it can harness the sun rays. Therefore, the demand of electricity from conventional grid is very
low, also it is estimated that by 2030 the percentage of electricity being taken from the
conventional grid will drop to 0 %, which means that the generation units might have to shut down
for part of the day [10] . This presents several logistical and economic problems for the electrical
companies in terms of maintaining the stability and reliability of the electric grid. On the other
hand, towards the end of the there is a staggering increase in the consumption thereby leading to a
huge spike in the demand which must be compensated by the conventional grid as the PV system
is not capable of generating energy in the evening and storing PV energy is very cost intensive
[6][10]. In order to cater to this huge demand the companies have to produce electricity at a very
high cost, and under hazardous conditions by operating the high emission sites, which pose an
environmental and safety risk and lead to inefficient usage of the resources [3]. It is predicted that
electrical vehicles will account for almost a quarter of the automobile market by the end of the
coming decade, and this introduces the challenge of providing plug-and-play charging points and
maintaining the stability of the electrical grid at the same time [8].4. Introduction:As the population increases the demand for electricity is also increasing and the non-uniform
nature of the consumption pattern is a concerning issue for the electricity producers and
distributors. The producers have attempted to mitigate this issue by employing Demand Side
Management and Demand Response on the consumer end in order to establish homogeneity in the
usage of power through the day [3]. The demand response has been categorized into price based
and incentive based, in order to have a greater number of participants in the DR program. The
demand response programs are integrated with energy management systems in order to establish
a two-way communication channel between the household and the retail supplier [3]. The suppliers
are trying to establish overall control of the grid during peak demand hours and contingencies by
managing the connection of devices in order to improve energy efficiency. In order to facilitate
the micro-managing of this phenomenon, microgrids have been created which are small electrical
distribution systems which connect multiple consumers to distributors [7]. The advent of
renewable energy systems in residential households has been stimulated by the decrease in the
pricing and catalyzed return of investment. The return of investment period has been considerably
reduced owing due to the possibility of sale of excessive power produced by the households back
to the suppliers. Although, the traditional power grids relied on large generation plants, but now
small modular renewable generation units are supplying to medium and low voltage grids thereby
changing the dynamic of power generation and consumption [7].5. Background:The producers of power have turned to demand responses as the solution to the problematic duck
curve which is being further fueled using solar energy in residential households. The main
objective of these programs is to help in the stabilization of the system during peak demand hours
and contingencies. Some of the incentive-based methods like Direct Load Control, Load
Curtailment and Demand Bidding give direct control to the supplier to control the power being
used by the household at a given point of time [3]. However, the consumer response to price-based
demand response programs has been better and tangible when compared to incentive-based
demand programs which gives the suppliers a degree of undue autonomy.
The most popular program is the Time of Use pricing (TOU) which is modelled on the
foundation of alignment between unit charges and demand ratio [3] . Another stem of this is
Critical Peak Pricing which involves very high prices in times when the system is jeopardized.
Another more popular demand response program is Real Time Pricing (RTP), which is based on
the foundation of aligning retails prices with real time wholesale prices thereby maximizing profit
[3]. It is found to have the maximum impact on flattening the load curve and in reducing the peak
[4]. It is combined with Hedging, which allows the consumer to purchase a proportion of power
through a long-term contract and the rest through Real Time Pricing. Moreover, it overcomes
another shortcoming of TOU, which is the fact that the charges are constant during a particular
period irrespective of the current weather conditions and utility ratio [4]. With TOU, the price
during a chilly winter night and slightly warmer winter night is the same and this leads to
discrepancies as the usage of energy widely differs during this period [4]. However, there are
various concerns that need to be addressed with respect to the implementation of the RTP program
on a wide scale basis. The first is the additional costs that are involved both on the supplier and
consumer end. The consumers must pay not only for the initial cost but also for the preparation of
a response plan and the cost for onsite generation. The suppliers must shell out money for installing
advanced meters and giving incentives to the participating consumers [3].
As the renewable generation increases, the requirement for reserves also increases
considerably [1]. Day-ahead plans and Hour-ahead plans have been formulated to ensure smooth
functioning of this program, wherein the prices are fixed a day ahead and hour ahead respectively
[1].A robust pricing system can be enabled by adjusting the wholesale prices to a static pricing in
order to avoid extreme variations while relaying prices to consumers and making the system
comprehensive. The loads are controlled through different layers of sensors and communicators
which operate as smart devices and set up a real time communication channel between the
suppliers and consumers [2][1]. This approach is inclusive and sustainable as it opens the avenue
for scheduled charging time for Electric Vehicles, thereby preventing the overload on the power
grid at any given point of time, and especially during the peak demand hours, by creating efficient
load profiles [8].
There are certain environmental concerns which arise while integrating solar energy with everyday
power ecosystem. The production of solar cells is associated with toxic chemicals like cadmium
and they need to be recycled appropriately to prevent any hazard [9]. However, as the demand
during peak hours is optimized, the need to operate plants which generate emissions will be
eliminated thereby reducing the carbon footprint of power generation and distribution [1]. There
are several positive outcomes that can be delivered by implementing Demand Response
effectively. They are:

·
Prevention of excessive investments in generation, transmission and distribution of
excess electricity
Improvement in the reliability of the power system
Increase in market efficiency
Efficient usage of resources
Decrease in emissions

·
·
·
·

The benefits can be gauged by implementing varying scenarios comprising different variables and
studying the difference in terms of cost and efficiency.7. MethodologyAim: Develop a load profile for a microgrid system and to compare a fixed versus flexible load
optimizing technique. The house will be fitted with 12 PV cells each rated for 0.35kW.
A load profile was developed to represent a simple households consumption over a 24 hour period. Each
p

Appliance
Number of
Appliances
Preferred Time of Use
Usage Time
Power
Rating
Energy
Used
Catagory

Washing
Machine
1
10:00
14:00
4
0.29
1.16
Flexible

Vacuum
Cleaner
1
10:00
14:00
4
1
4
Flexible

Oven
1
11:00
13:00
2
1.2
2.4
Flexible

Microwave
1
9:00
9:30
1
1.2
1.2
Fixed

Aircon
1
8:00
9:00
3
1.8
5.4
Flexible

TV
2
12:00
22:00
10
0.6
6
Fixed

PC
2
9:00
17:00
8
0.15
1.2
Fixed

Lights
8
12:00
12:00
24
0.1
2.4
Fixed

Energy Consumed
23.76

A generation profile is developed for both a winter and summer to show the temperature and irradiance
which both impacts how much power is generated by the PV cells.

WINTER
SUMMER

Temp (celsius)
Irradiance (W/m^2)
Temp (Celsius)
Irradiance (W/m^2)

30.57
0
30
0

33.6
0
30
0

41.21
0
30
0

48.99
0
30
0

55.69
0
30
0

60.58
17.34
30.81
0

63.21
70.93
43.09
386.6

63.37
294.34
52.35
672.3

61.04
542.26
58.61
858.48

56.42
743.45
62
955.67

49.93
886.4
62.45
686.01

42.23
960.42
59.94
897.2

34.49
964.72
54.55
738.08

30.69
899.81
46.25
485.46

30
765.09
34.34
107.54

30
570.88
30
0

30
327.4
30
0

 

30
92.06
30
0

30
20.97
30
0

30
0
30
0

30
0
30
0

30
0
30
0

30
0
30
0

30
0
30
0

When extra energy is created by the PV cells and sold back to the grid it is assumed the price is
10 cents per Kilowatt. When not enough energy is generated, and extra power needs to be
purchased from the grid the price will be 17 cents in off-peak and 36.5 cents curing peak.Scenario 1: Microgrid with PV and no batteryThe load profile is generated and comparted with the PV generation profile. During peak usage power
will be purchased from the grid at the TOU pricing. The power purchased from the grid is shown in the
grid profile.Scenario 2: Microgride with PV and battery storageThe load profile is generated and comparted with the PV generation profile. When extra power is
generated from the PV the battery will be charged. When peak power is needed the battery will be used. If
the battery is depleted then then power will be purchased from the grid and likewise, when the battery is
full then then surplus power will be sold back to the grid using TOU pricing.Scenario 3: Microgrid with PV and battery storage with energy optimizationThe load profile is generated and comparted with the PV generation profile. When extra power is
generated from the PV the battery will be charged. When peak power is needed the battery will be used. If
the battery is depleted then then power will be purchased from the grid and likewise, when the battery is
full then then surplus power will be sold back to the grid using TOU pricing.
To try and reduce the peaks demands and better smooth out the usage across the day each device in the
microgrid is categorized as either fixed or flexible. When peak usage occurs and the load profile exceeds
the generation profile, flexible loads will be delayed until there is surplus energy to try and reduce
reliance on the grid and reduce costs. By reducing the peak loads and by using a battery to compensate for
the natural fluctuations throughout the day the savings will make the capital expenditure more appealing.Resources:Python libraries were adapted to generate the profiles for the scenarios above.Anaconda and Jupyter IDE8. Results/DiscussionScenario 1: Microgrid with PV and no batterySummer WinterScenario 2: Microgride with PV and battery storage9. Project Management
10. Legal, Ethical, Environmental12. References[1]I. Paschalidis, B. Li and M. Caramanis, “Demand-Side Management for Regulation Service
Provisioning Through Internal Pricing”, IEEE Transactions on Power Systems, vol. 27, no. 3, pp.
1531-1539, 2012. Available: 10.1109/tpwrs.2012.2183007.
[2]M. Roozbehani, M. Dahleh and S. Mitter, “On the stability of wholesale electricity markets
under real-time pricing,” 49th IEEE Conference on Decision and Control (CDC), Atlanta, GA,
2010, pp. 1911-1918, doi: 10.1109/CDC.2010.5718173.
[3]A. Jordehi, “Optimisation of demand response in electric power systems, a review”, Renewable
and Sustainable Energy Reviews, vol. 103, pp. 308-319, 2019. Available:
10.1016/j.rser.2018.12.054.
[4] S. Borenstein, M. Jaske and A. Rosenfeld, “Dynamic pricing advanced metering and demand
response in electricity markets” in , UC Berkeley:Center for the Study of Energy Markets.
[5]D. Crossley, “The role of advanced metering and load control in supporting electricity
networks”, Research Report No 5 Task XV of the International Energy Agency Demand Side
Management Programme, October 2008.
[6]I. Stadler, “Power grid balancing of energy systems with high renewable energy penetration by
demand response”, Utilities Policy, vol. 16, no. 2, pp. 90-98, 2008. Available:
10.1016/j.jup.2007.11.006.
[7]L. Montuori, M. Alcázar-Ortega, C. Álvarez-Bel and A. Domijan, “Integration of renewable
energy in microgrids coordinated with demand response resources: Economic evaluation of abiomass gasification plant by Homer Simulator”, Applied Energy, vol. 132, pp. 15-22, 2014.
Available: 10.1016/j.apenergy.2014.06.075.
[8]J. Zhao, S. Kucuksari, E. Mazhari and Y. Son, “Integrated analysis of high-penetration PV and
PHEV with energy storage and demand response”, Applied Energy, vol. 112, pp. 35-51, 2013.
Available: 10.1016/j.apenergy.2013.05.070.
[9]H. O. R. Howlader, M. M. Sediqi, A. M. Ibrahimi and T. Senjyu, “Optimal Thermal Unit
Commitment for Solving Duck Curve Problem by Introducing CSP, PSH and Demand Response,”
in IEEE Access, vol. 6, pp. 4834-4844, 2018, doi: 10.1109/ACCESS.2018.2790967.
[10] B. Kulkarni, D. Patil and R. G. Suryavanshi, “IOT Based PV assisted EV Charging Station
for Confronting Duck Curve,” 2018 International Conference on Computational Techniques,
Electronics and Mechanical Systems (CTEMS), Belgaum, India, 2018, pp. 36-39, doi:
10.1109/CTEMS.2018.8769145.
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