Optimal Power Flow for Maximizing Network Benefits From Demand-Side Management

This paper applies optimal power flow (OPF) to evaluate and maximize network benefits of demand-side management (DSM). The benefits are quantified in terms of the ability of demand-responsive loads to relieve upstream network constraints and provide ancillary services, such as operating reserve. The study incorporates detailed information on the load structure and composition, and allows the potential network benefits, which could be obtained through management of different load types, to be quantified and compared. It is demonstrated that the actual network location of demand-manageable load has an important influence on the effectiveness of the applied DSM scheme, since the characteristics of the loads and their interconnecting networks vary from one location to another. Consequently, some network locations are more favorable for implementation of DSM, and OPF can be applied to determine the optimal allocation of demand-side resources. The effectiveness of the presented approach is assessed using a time-sequential OPF applied to typical radial and meshed U.K. distribution networks. The results of the analysis suggest that network operators could not just participate in, but also encourage and add value to the implementation of specific DSM schemes at the optimum network locations in order to maximize the total benefit from DSM.