Economical Sizing of an Energy Storage System for a Community Microgrid, through the Designing of a Smart Demand Response Technology

Formation of “duck curve” is becoming a concerning topic in the power industry. This causes the power systems to dispatch expensive power generation during peak hours, and creates a burden to the utility in power system planning and operation. Although community microgrid is an effective solution, the cost of deployment becomes a barrier. The costliest component of the microgrid is the energy storage. To overcome this problem, a smart demand response technology is introduced at the planning stage to size the battery economically. Smart demand response technology consists of two parts, as forecasting model to predict the demand curve and real time pricing model to guide the consumers to follow the expected demand curve. Expected demand curve is obtained through peak clipping of the predicted demand curve by a predetermined percentage. Real time pricing is implemented based on the expected demand curve, which allowed to reduce the battery size.