This study proposes optimal day-ahead demand response (DR) participation strategies and distributed energy resource (DER) management in a residential building under an individual DR contract with a grid-system operator. First, this study introduces a DER management system in the residential building for participation to the day-ahead DR market. The distributed photovoltaic generation system (PV) and energy-storage system (ESS) are applied to reduce the electricity demand in the building and sell surplus energy on the grid. Among loads in the building, lighting (LTG) and heating, ventilation, and air conditioning (HVAC) loads are included in the DR program. In addition, it is assumed that a power management system of an electric vehicle (EV) charging station is integrated the DER management system. In order to describe stochastic behavior of EV owners, the uncertainty of EV is formulated based on their arrival and departure scenarios. For measuring the economic efficiency of the proposed model, we compare it with the DER self-consuming operation model without DR participation. The problem is solved using mixed integer linear programming to minimize the operating cost. The results in summer and winter are analyzed to evaluate the proposed algorithm’s validity. From these results, the proposed model can be confirmed as reducing operation cost compared to the reference model through optimal day-ahead DR capacity bidding and implementation.
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