Effects of Economic scheduling of DER with Renewables Energy

Abstract

Now a day’s improved demands in the country's electricity and occurrences of electricity scarcities, power quality (PQ) issues, rolling power failure, and electricity cost increase have affected several function consumers to seek additional sources of high-quality, reliable electricity. DER, small-scale power generation sources situated close to where electricity is used, deliver an substitute to or an improvement of the outdated electric power grid.DER is a faster, less costly option to the structure of large, central power plants and high-voltage transmission lines. DER offers the consumers that the potential for lower cost, advanced service reliability, high PQ, improved energy efficiency, and energy independence. Renewable distributed energy generation technology and green power like wind, PV, Geothermal, biomass or hydroelectric power has provided environmental benefits. Over the last two decades, public policies aimed at reducing carbon emissions to mitigate climate change have significantly altered the mix of generation technologies in many parts of the world. Because wind and solar generation now contribute a substantial fraction of the overall production of electrical energy, electricity markets have had to adapt to their intermittent and stochastic nature. To deal more efficiently with the larger imbalances between generation and load that renewable generation causes, markets operate on a much shorter time frame than before. Another adaptation is the increasing reliance on flexibility from the demand side to help maintain this balance. Marshaling demand side resources is challenging because they tend to be small and distributed throughout the system. Direct participation in the wholesale electricity markets by distributed energy resources (such as demand response, small scale energy storage, and photovoltaic generation) is not possible because it would vastly increase the number of market participants and render these markets unmanageable. In addition, the rules of the wholesale markets are complex and the requirements for participants are strict, making the transaction cost prohibitively expensive for small participants. To overcome this problem, new entities called aggregators are emerging. Their role is to serve as a commercial and technical intermediary between the wholesale markets and the owners of DER who could contribute to economic efficiency of the overall structure.