This paper presents a two-step procedure to enable residential Demand Response (DR) programs in Multi-Carrier Energy Systems (MCES)

including combined heat and power generation

renewable resources

boiler

and energy storage systems. In the first step

an optimization problem is solved to determine the optimal energy cost for each customer. In the second step

the system operator (SO) minimizes the summation of the total loss cost of the electrical distribution system and a designed motivational payment

subject to various operational constraints of the MCES. The motivational payment is the function of deviation of the resulting energy cost of a home in the second step from the desired cost obtained in the first step. The main idea of the proposed procedure is to consider the concerns of customers and the operator

simultaneously. This paper also addresses the uncertainties in renewable resources generation. The proposed procedure is simulated on a test energy system for various cases. The results show that as the level of customer participation in the proposed program is increased

the technical aspects of the integrated energy system are improved. In addition

the customers' costs are decreased by participation in the proposed program.