1.1. Motivation and Background
Power system reliability can be evaluated as one of the most important factors in the operation, planning, and design process of the utility network and sometimes state-regulated area. This complicated architecture including numerous different types of loads, transformers, substations, switching components, and long transmission lines targets to supply hundreds of millions of electricity consumers’ daily needs in a reliable fashion. The North American Electric Reliability Corporation (NERC), one of the most widely-known institutions, has provided a definition for reliability as [
1] “
the ability to meet the electricity needs of end-use customers even when unexpected equipment failures or other factors reduce the amount of available electricity”. Additionally, from European energy providers’ viewpoint, European Network of Transmission System Operators (ENTSO-E) provided the widely-known definition as “
a general term encompassing all the measures of the ability of the system, generally given as numerical indices, to deliver electricity to all points of utilization within acceptable standards and in the amounts desired” [
1].
Recently, increasing environmental concerns and growing demand paved the way for expanding the portion of renewable-based energy systems on the generation side, ensuring reliable, sustainable, and resilient power grid operation [
2]. In order to reduce greenhouse gas emissions, there have been great attempts and incentives within the context of signing protocols by most of the countries. Among them, Malta and Sweden target to increase the installed renewable energy resources (RESs) capacity respectively by 10% and 49% [
3]. The European Council has agreed on the 2030 climate and energy framework, including targets and policy objectives. Particularly, reducing greenhouse gas emission at least by 40% compared to the level of 1990, increasing renewable energy consumption rate at least 32%, and improving energy efficiency level by 32.5% are the key targets for 2030 [
4]. According to the Renewable Energy Roadmap (Remap) 2030 [
5], the world’s biggest energy consumer, China, is aiming to increase the share of renewables in the power sector from 20% to 40% by 2030. It is obvious that it requires a market reform as well as significant growth in transmission and grid capacity.
There are many types of renewable energy resources in the energy sector, such as wind, solar, hydro, and biomass [
5]. Among them, photovoltaic (PV) generation is accepted as one of the most prominent sources, and its globally installed capacity is increasing day by day considering technological developments and economic achievements, especially for implementing at the scale of distributed generation (DG). This green resource can be installed at a large-scale in utility facilities or at a small-scale at the end-users’ premises with the aim of meeting the local demand. It is to be highlighted that grid-connected units can play a key role in system operation, especially in case of failures in any part of the system and in providing reliability improvement by decreasing unsupplied power.
From the other perspective, demand side has also witnessed spectacular changes in its architecture, e.g., prosumers (consumers also with on-site production facilities) with flexible loads are strongly encouraged to alter their load profiles for the purpose of accomplishing particular objectives such as load leveling, reliability enhancement, and voltage regulation within the paradigm of smart grid. Unlike the conventional network operation in which expanding generating capacity means to increase reserve margin and reliability factor [
6], modern structure turns its perspective from the power supply side to the demand side. A conceptual definition of demand response (DR) by US Energy Information Administration viewpoint is as follows: “
Demand-side management (DSM) programs consist of the planning, implementing, and monitoring activities of electric utilities which are designed to encourage consumers to modify their level and pattern of electricity usage” [
7]. It is worthy to indicate that new approaches play a critical role in electrical system planning while considering its sophisticated structure, and the last decade has seen a growing trend towards incorporating DR strategies into operational stages to increase network performance and quality of services. Here, smart households that can alter their internal operation in an optimized way, especially if a home energy management system (HEM) exists, have further capability to enhance effective implementation of residential DR, which is an area where more implementations have been provided recently.
1.2. Literature Review
In recent years, integrating modular RESs into the power system as well as demand side management implementations have been widely investigated in the literature to cope with reliability issues and increase the quality of services. In this respect, Yoo et al. [
6] proposed a reliability-based DR program in which traditional DR programs such as summer vacation period DR program, direct load control, and demand bidding were reconstructed considering the system requirements. The presented structure consisting of consumer data management and program operation parts aided network operation, especially in emergency conditions, by trading emergency DR resources instantly.
Wu et al. [
8] examined the effect of aggregated electric water heaters (EWHs) DR capability and their load shifting performance analysis, especially in peak hours for the purpose of achieving reliability improvement. According to the results, it should be highlighted that the reliability indices were enhanced thanks to the provided certain amount of operating reserve by aggregated EWHs. The optimization-based strategy also aimed to reduce end-users’ total cost while maintaining the comfort levels. In order to improve the reliability indices in modern power systems, controllable demand sources were taken into consideration in [
9] as an alternative for extra generation (reserves). On the other hand, DR implementation affects the generating system reliability. In [
10], the short-term reliability model of DR capacity was proposed using a multi-state continuous-time Markov chain model.
A stochastic security constrained scheduling approach integrating DR model was presented in [
11] with the objective of determining an optimal strategy for the independent system operator considering market conditions, system security, and reliability needs as well as air pollution. Moreover, total operational cost was also aimed to be minimized by implementing an efficient DR program through mixed-integer linear programming. Goel et al. [
12] conducted a study in which the effects of stochastic demand side load shifting approach on electricity price volatility and reliability issues were examined by using optimal power flow combined with some reliability evaluation techniques in restructured power systems. Additionally, in [
13], the impacts of real-time price-based DR application on system reliability were investigated by taking into account nodal price volatility and potential DR resources. The optimal power system operation was guaranteed within the generation and the transmission constraints. However, no attempt was made to investigate RES-based generating unit’s impact on the power grid reliability indices in studies [
12,
13].
Li et al. [
14] created a model for a micro-grid including loads, distribution generators, and energy storage systems (ESSs) combined with possible DR strategies for reliability evaluation in a distribution system unlike the obsolete conventional methods. RES penetrations as well as charging/discharging strategies of ESSs were taken into consideration evaluating their impacts on the operational perspective. In order to validate the effectiveness of the proposed scheme, sequential Monte Carlo simulation and minimal path method were used.
The effects of the DR program on the reliability assessment of a microgrid was also studied in [
15] considering its complicated architecture. The authors in [
16] presented a new bus weighting methodology with the aim of optimizing system operation, especially in case of unfavorable weather conditions or peak demand periods. It is significant to indicate that expected interruption costs were decreased approximately by 20% thanks to the proposed framework, in which it is possible to distribute the total system’s DR requirement in critical loading events.
Su et al. [
17] proposed a reliability assessment model considering aging period of conventional power equipment for determining reliability of the distribution network also including PV generation. In [
18], the climate change effects were taken into account for assessing reliability of the PV integrated power systems. Several positive and negative impacts of the roof-top PV systems on the reliability of distribution transformers were identified in [
18]. The negative impacts of the roof-top PV systems according to penetration level were presented in [
19].
Hybrid systems usually increase power system reliability, and, in this manner, Raghuwanshi and Arya [
20] studied the impacts of hybrid systems having different combinations of diesel/PV/battery systems on power system reliability. Markov model and frequency–duration (F–D) reliability techniques were used for assessing reliability indices, namely, loss of load probability (LOLP), expected energy not supplied (EENS), and mean downtime (MDT). In [
21], optimum restoration strategies were generated together with the consideration of distribution system reliability assessment considering hybrid renewable DG systems. A time-sequential Monte Carlo simulation was used for evaluating distribution system reliability in the mentioned study.
Cao et al. [
22] examined the effects of wind power integration on the reliability assessment of power systems. The authors in [
23] constructed a power system reliability model by taking highly integrated wind farms into account and analyzed the results by an IEEE-RTS79 based case study through Monte Carlo simulation technique. However, any types of DR programs combined with RES integration under reliability assessment architecture were not considered in [
22,
23].