Cost-Effective Microgrid Operation with Plug-In Hybrid Electric Vehicle Considering Demand Side Management

Demand side management (DSM) lowers operating costs by dividing loads into shiftable and non-shiftable categories and rearranging the load demand model of a distribution system. Moving variable loads to hours with lower utility prices per unit allows for this. This work employs a bi-level optimization approach to lower the operational expenses of a low-voltage microgrid system that runs in grid-connected mode and uses fossil fuel generators, renewable energy sources, and plug-in hybrid electric vehicles (PHEVs). The load model is rearranged at the first optimization stage based on the DSM participation level. Subsequently, the reorganized load demand models are considered, and suggestions for distributed generator scheduling are brewed to lower the second-level microgrid system's producing expenses. The widely used differential evolution (DE) method, used for several power system optimization problems in the past, served as the study's optimization tool. The active power production cost was decreased while accounting for DSM and considering different grid participation and grid pricing systems. Like the grid, the PHEV implemented the G2V and V2G technology to charge and discharge itself which also played a vital role in decrement of the operational expense.