Evaluating Demand Response Impacts on Capacity Credit of Renewable Distributed Generation in Smart Distribution Systems

Environmental concerns and depletion of traditional energy lead to the booming development of renewable distributed generation (RDG) in the past decade. However, due to intermittent nature of renewable energy sources, to what extent RDG could provide capacity to power systems becomes a critical issue to the utility company when implementing long-term system strategic (generation expansion) planning. On the other hand, in a smart-grid frame, the popularization of different varieties of demand-side resources enables the system to operate at more flexible modes ever before. The potential variability in load demand not only introduces additional dynamics and uncertainties to the system, but could also affect the reliability benefits of RDG. Therefore, in practice, to effectively estimate the reliability value of RDG in power systems, the potential interaction between generation- and demand-side must be properly captured. In this paper, a study to assess the capacity credit (CC) of RDG in a context of distributed generation system is performed with consideration of the impacts of demand response (DR). A compound reliability model for DR is presented, which considers the uncertainties involved in both instant response and follow-on load recovery processes. On this basis, an assessment framework for the CC of RDG based on sequential Monte Carlo simulation is developed by which the inter-temporal characteristics of DR resources can be fully captured. The numerical study is implemented based on the IEEE-38 bus test case. The calculation results demonstrate that the CC of RDG would depend on a variety of factors, including penetration level, responsiveness of load demand and the correlations between RDG and DR availability. Also, it is shown that accounting for the underlying effect of DR is of absolute importance, otherwise the CC of RDG might be estimated erroneously in real practices.