In future power systems, intermittent renewable generation sources are expected to have a considerable segment in the total generation assortment. Given the inconsistency and unpredictability of intermittent renewable energy sources, the fast growing integration of intermittent renewable generation could negatively affect the operations of power system. Since demand response (DR) is a flexible load shaping tool, it is viewed as a practicle solution to enhance the overall system efficiency in future smart grids.The overall objective of this dissertation is to evaluate the possible advantages of responsive domestic heating, ventilation, and air conditioning (HVAC) loads for DR applications and the development of practical frameworks to realize them. Due to its considerable share in energy consumption profile and operational flexibility, the DR treatment is restricted to the HVAC load. The DR applications include the minimization of customer energy cost and increased utilization of intermittent generation while taking into account customers' thermal comfort. The goal of this dissertation is divided into three major tasks so as to describe the DR benefits for various applications. A comprehensive assessment of HVAC DR potential for up/down ramping is suggested in the first task. The second task proposes generic frameworks for HVAC load management that are directed towards minimizing customer energy payments while taking customer's preferences into consideration. Finally, the last task establishes tools for increased utilization of wind generation by optimally managing the cyclic operation of responsive HVAC loads.To accomplish this dissertation objective, simulations are conducted using the proposed frameworks for Finnish systems. The following significant deductions are indicated in the results. The flexibility to unleash DR for up/down ramping is affected by the heat demand requirements, while upward DR is strongly limited by HVAC power ramping capability and allowed thermal comfort limits. Furthermore, utilization of DR will greatly shrink customer energy payments which mainly depends on the permissible indoor temperature deviation. The monetary savings are value added when DR is jointly activated in both energy and balancing market using the proposed model. Additionally, it is revealed that joint optimization of DR and RTTR will attain greater utilization of wind generation in distribution networks as weighed against DR activation alone.The developed models can be utilized by power system operators and stake holders to enhance the system operation. Consequently, the developed tools will help to achieve a better understanding of HVAC DR potential and advantages and will act as support to maximize the DR enrolment at the end user level.
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