Analysis of Microgrid Contributing to Hour-ahead market operation through Marginal Day-ahead market Price-Based Demand Response

In Japan, 53 GW Photovoltaic (PV) systems will be introduced in future electric power system in 2030 year. It will raise issues of insufficient supply capability and reserve capacity to utility operator to ensure supply-demand balance. On the other hand, Microgrid that located in demand side will be expecting to actively response the incentive signal sent by the utility operator so as to contributing to demand-supply adjustment. In this paper, based on revised IEEJ-EAST-10 Generators simulation model that included of 22GW PV generations and 5GW Microgrids, we analyzed the effect and potential contribution capability of microgrid to electric power system demand-supply adjustment in hour-ahead electricity market through Price-Based Demand Response. Firstly, we analyzed the impact of day-ahead market marginal price on optimal scheduling of Micorgrid. Secondly, we analyzed the impact of optimal scheduling of Micorgrid on Utility operator in Hour-ahead market operation. Lastly, we evaluated the contribution capability of microgrid to electric power system demand-supply adjustment in hour-ahead electricity market that included the improvement of partial-load operation of coal thermal power plant, Utility side load-leveling, and reserve capacity provided by Microgrid.