Abstract
In this paper, a comprehensive energy management framework for microgrids that incorporates price-based demand response programs (DRPs) and leverages an advanced optimization method-Greedy Rat Swarm Optimizer (GRSO) is proposed. The primary objective is to minimize the generation cost and environmental impact of microgrid systems by effectively scheduling distributed energy resources (DERs), including renewable energy sources (RES) such as solar and wind, alongside fossil-fuel-based generators. Four distinct demand response models-exponential, hyperbolic, logarithmic, and critical peak pricing (CPP)-are developed, each reflecting a different price elasticity of demand. These models are integrated with a flexible elasticity matrix to assess the dynamic consumer response to fluctuating electricity prices. The study evaluates four operational scenarios, focusing on grid participation, DER utilization, and the impact of real-time pricing (RTP), time of use (TOU), and critical peak pricing strategies. Quantitative results demonstrate the significant cost-saving potential of integrating DRPs with microgrid operations. In the optimal scenario, the GRSO achieved a minimum generation cost of 882¥ for the base load profile. Further, when critical peak pricing (CPP) was applied, the generation cost was reduced to 746¥, representing a 15.4% reduction. For a scenario where the grid's participation was limited, the logarithmic-based demand response model decreased the generation cost to 817¥, while full grid interaction led to higher cost reductions. Additionally, our results show a significant reduction in peak load, with load factor improvements of up to 87.7% across the studied demand profiles. Furthermore, limiting the grid's upstream power capacity to 30 kW resulted in a 7% increase in generation cost across all cases, confirming the importance of grid participation in reducing operational costs. The GRSO algorithm outperformed traditional metaheuristics in terms of both execution time and convergence, making it a viable solution for real-time microgrid optimization. In conclusion, the proposed GRSO-based framework provides an efficient approach for microgrid cost minimization, achieving up to a 15.4% reduction in operational costs and notable environmental benefits by reducing emissions. This study highlights the importance of dynamic demand response strategies and grid participation for sustainable and cost-effective microgrid management.