Optimization for demand response capacity

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University of New Brunswick


Demand response (DR) strategies have become more valuable in the last decade as more utilities seek to reduce peak demand each year. This research work formulates a linear optimization model that minimizes the total cost of implementing and operating various demand response programs. It provides the optimum combination of DR programs, allowing utilities to estimate the number of each demand response product to be installed. A Microsoft Excel template is developed that calculates demand response capacity for any end-use and contains the novel optimization. The template reflects the methodology used in this research to calculate demand response capacity. It also facilitates identifying the costs with the most impact on the levelized cost of the programs. This study evaluates direct load control for electric vehicles, electric water heaters, and smart thermostats for heat pumps and electric baseboard heaters. Also, an open-loop control with a timer switch for electric water heaters is considered. The results indicate that the calculated levelized costs of the programs are competitive with the levelized capital costs of some new gas peaker plants in Nova Scotia. The case studies demonstrate that operating direct load control programs can be significantly more costly than the open-loop control approach.