Short-term reliability and economic evaluation of resilient microgrids under incentive-based demand response programs

In this paper, a flexibility oriented stochastic scheduling framework is presented to evaluate short-term reliability and economic of islanded microgrids (MGs) under different incentive-based DR (IBDR) programs. A multi-period islanding constraint is considered to prepare the MG for a resilient response once a disturbance occurs in the main grid. Also, a multi-segment optimal power flow (OPF) approach is used to model the IBDR actions and reserve resources. Moreover, uncertainties associated with electricity prices, loads, renewable generation, calls for reserve as well as uncertainties of islanding duration of the MG are considered. The ultimate goal of the MG operator is to maximize its expected profit under a certain level of security and reliability in conjunction with the minimization of energy procurement costs of customers. The MG's economy and reliability indices are studied considering normal operation and resilient condition based on appliances characteristics, customers’ and operator's behaviors. The proposed model can effectively manage MGs operation in both normal and resilient conditions in order to improve economic and reliability indices. Numerical results demonstrate that by implementing IBDR, in cases of normal and resilient operation, the expected profit of the MG operator increases about 4% and 2.7% and reliability indicator improved 60% and 56%, respectively.