Optimal Dispatch Strategy for Industrial or Commercial Parks with Energy Storage Participating in Demand Response

With the power system transitioning toward low-carbon and market-oriented operation, energy storage in industrial and commercial parks has attracted significant attention for optimized operational strategies in demand response. This paper investigates an innovative business model where energy storage systems deployed within industrial and commercial parks participate in demand response (DR) invitations to create value. For this model, the paper constructs a Mixed Integer Linear Programming (MILP) optimization model with the objective of maximizing the park’s total revenue from DR participation. The model precisely characterizes the physical constraints of energy storage operation and the complex interaction process of parks participating in DR. Specifically, for the non-linear segmented calculation of effective response capacity and assessment mechanisms in DR rules of certain regions, the paper proposes and details a linearization method based on auxiliary binary variables and the big-M method, accurately transforming it into standard MILP constraints. Through a representative case study, the effectiveness of the proposed model is verified, demonstrating that this optimization strategy can significantly enhance the economic benefits of energy storage parks, providing decision support for their participation in demand response programs.

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Publication Details

Published
2025-07-04
DOI
https://doi.org/10.1109/icpet66029.2025.11160396
Primary Topic
Smart Grid Energy Management
Type
article
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article

Optimal Dispatch Strategy for Industrial or Commercial Parks with Energy Storage Participating in Demand Response

G. Y. Hou, Zihao Tian, Zhengting Jiang
Smart Grid Energy Management
article

Optimal Dispatch Strategy for Industrial or Commercial Parks with Energy Storage Participating in Demand Response

G. Y. Hou, Zihao Tian, Zhengting Jiang
article en

Abstract

With the power system transitioning toward low-carbon and market-oriented operation, energy storage in industrial and commercial parks has attracted significant attention for optimized operational strategies in demand response. This paper investigates an innovative business model where energy storage systems deployed within industrial and commercial parks participate in demand response (DR) invitations to create value. For this model, the paper constructs a Mixed Integer Linear Programming (MILP) optimization model with the objective of maximizing the park’s total revenue from DR participation. The model precisely characterizes the physical constraints of energy storage operation and the complex interaction process of parks participating in DR. Specifically, for the non-linear segmented calculation of effective response capacity and assessment mechanisms in DR rules of certain regions, the paper proposes and details a linearization method based on auxiliary binary variables and the big-M method, accurately transforming it into standard MILP constraints. Through a representative case study, the effectiveness of the proposed model is verified, demonstrating that this optimization strategy can significantly enhance the economic benefits of energy storage parks, providing decision support for their participation in demand response programs.

Xi'an Jiaotong University (CN)
Openalex Percentile: Top 75%
Smart Grid Energy Management
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