Developing a two‐step method to implement residential demand response programmes in multi‐carrier energy systems.

Expansion of cogeneration technologies, such as combined heat and power units, has boosted the growth of multi‐carrier energy systems. A two‐step method is presented to enable residential demand response (DR) programmes in the multi‐carrier energy systems. In the first step, the energy management system at each home solves an optimisation problem to achieve the desired energy cost and demand schedule for the customer according to received price signals. In the second step, the system operator revises the demand scheduling by running another optimisation problem to minimise the total electrical losses, subject to the operational characteristics of electrical and natural gas systems. In order to persuade customers to participate in the DR programmes, it is guaranteed that the resulted cost of the second step is not more than the desired cost of the customer in the first step. Results of applying the proposed method, incorporating different penetration levels of customer participation in a time‐of‐use programme is studied in a test energy system. Simulation results verify the effectiveness of proposed method in minimising the total electrical losses, improving the operational characteristics of the energy system as well as providing customers' utilities. [ABSTRACT FROM AUTHOR]