Study Of Economic Dispatch Optimization Problem Integrated With Stochastic Demand Side Response

The risk of global climate change and confronting of tumbling carbon emissions necessitate new ways to collaboratively control and optimize energy production and load. High costs for fossil fuels and escalating installations of alternate energy sources are daunting main challenges on power grid management. Uncertainty in generation and demand for electric energy require elastic generation capacity and stochastic optimization of generation schedules. The introduction of time-variable energy tariffs is a loom to attract consumers to shift their energy loads into low demand periods.In this thesis we will build a model to solve an economic dispatch problem with integration of stochastic demand side response so that the demand can be shifted from peak load hour to off-peak load hour. We will also introduce the customer’s willingness to shed their load by giving the price signal an hour ahead of time. In this thesis we will also emphasis that neither the price signal should be given too high that the customer cut most of the load by transferring all to the off-peak hour not it should be too low that the generation utility becomes unable to raise enough profit.Here we built a model that will serve3major tasks. The first is to solve the economic dispatch so that optimal generation is obtained, second is to integrate DSR by considering the probability of the user to take part in shifting the load from peak hours and third is to give the incentives to the customer to attract them towards participating in DSR and also maximizing the generation utility’s profit.