A Novel Demand Response Strategy for Sizing of Hybrid Energy System With Smart Grid Concepts

The sizing problem of the hybrid energy system (HES) is a crucial issue especially in rural communities because any wrong results can mislead the decision makers for building the new HES. Due to the intermittent nature of the renewable energy sources (RES) such as wind and PV, there will be a need for a high storage system and/or a standby diesel engine, which increase the investment, required, and increases the cost of energy (CoE). The use of smart grid concepts like the demand response (DR) using dynamic tariff can improve the system performance, enhance the stability, reduces the size and investments of HES components, reduces the customers’ bills, and increases the energy providers’ profits. The DR strategy will allow the customers to share the responsibility of the HES stability with the energy providers to maintain the stability of the HES. The DR strategies should be selected to ensure the balance between the available RES and the load requirements. In this article, a novel DR strategy is introduced to model the required change in the tariff with the battery state of charge and its charging/discharging power. The novel DR strategy is used in the sizing of the HES based on techno-economic objectives using three different soft computing optimization techniques. This article introduces modeling and simulation of the smart grid integrated with hybrid energy systems to supply a standalone load for a rural site in the north of Saudi Arabia. The sizing of the HES is built based on minimizing the CoE and the loss of load probability. The novel DR strategy introduced in this article reduced the size of the HES compared to the fixed load technique by 20.66%. The results obtained from this novel strategy proved its superiority in the sizing and operation stage of the HES.