Abstract
Plug-in electric vehicles (PEVs) present a promising solution to mitigate greenhouse gas emissions but on the other hand, their increased penetration can impact power system operation, particularly so in an isolated microgrid. Similarly, demand response (DR) has the potential to provide significant flexibility in the operation of an isolated microgrid with limited generation capacity, by altering the demand and introducing an elasticity effect. This paper proposes a new mathematical model for optimal scheduling of energy resources and smart management of loads which includes smart charging of PEVs, DR, and operation of battery energy storage systems (BESSs), for isolated microgrids. Different case studies are developed to examine isolated microgrid operations when the demand increases, and how the energy management model copes with such increase. The proposed model develops energy management strategies considering the network constraints and different objective functions from the perspective of the microgrid operator as well as from the owners of PEVs and BESS.