Market clearing in an islanded microgrid considering the impact of demand response programs and consumer discomforting

The traditional power system paradigm, characterized by fixed tariffs and a lack of consideration for dynamic wholesale values, is faced with inherent challenges impacting its efficiency and resilience. These challenges are addressed by introducing a novel model for market clearing in islanded microgrids. The limitations of existing systems, including the absence of dynamic pricing, insufficient consideration for consumer discomfort during peak hours, and inefficient resource utilization, are taken into account. The primary objective of this research is to mitigate customer discomfort through the incorporation of Demand Response Programs (DRP) and the use of the Particle Swarm Optimization (PSO) algorithm for market clearing. Simulation results demonstrate the effectiveness of the model, notably improving transmission line loading and overall resource utilization. This innovative approach not only provides a solution to existing challenges but also advances sustainable and resilient microgrid operations.