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Short-term scheduling of microgrids in the presence of demand response

In this paper, operation management of microgrids is performed. To do so, some contingencies including outage of distributed generators (DG), energy storage (ES) and the upstream network are considered. Since the microgrids have suitable capabilities in terms of control and communication, demand response reserve can be applied to improve the operation management. Using Monte Carlo simulation method and Markov chain, several scenarios are generated to show the possible contingencies in various hours. Then, a scenario reduction method is used for reducing the number of scenarios. Finally, a two-stage stochastic model is applied to solve a day-ahead scheduling problem in mixed-integer linear programming by GAMS. Consequently, the effect of demand response in the reduction of operation cost is demonstrated.