Demand Response Economic Assessment with the Integration of Renewable Energy for Developing Electricity Markets

Electricity disparity in sub-Saharan Africa is a multi-dimensional challenge that has significant implications on the current socio-economic predicament of the region. Strategic implementation of demand response (DR) programs and renewable energy (RE) integration can provide efficient solutions with several benefits such as peak load reduction, grid congestion mitigation, load profile modification, and greenhouse gas emissions reduction. In this research, an incentive and price-based DR programs model using the price elasticity concepts is proposed. Economic analysis of the customer benefit, utility revenue, load factor, and load profile modification are optimally carried out using Freetown (Sierra Leone) peak load demand. The strategic selection index is employed to prioritize relevant DR programs that are techno-economically beneficial for the independent power producers (IPPs) and participating customers. Moreover, optimally designed hybridized grid-connected RE was incorporated using the Genetic Algorithm (GA) to meet the deficit after DR implementation. GA is used to get the optimal solution in terms of the required PV area and the number of BESS to match the net load demand after implementing the DR schemes. The results show credible enhancement in the load profile in terms of peak period reduction as measured using the effective load factor. Moreover, customer benefit and utility revenues are significantly improved using the proposed approach. Furthermore, the inclusion of the hybrid RE supply proves to be an efficient approach to meet the load demand during low peak and valley periods and can also mitigate greenhouse gas emissions.