Novel algorithm for aggregated demand response strategy for smart distribution network

Abstract

Advancement in demand side management strate gies enables smart grid to cope with the ever increasing energy demand and provide economic benefit to all of it's stakeholders. Moreover, emerging concept of smart pricing and advances in load control can provide new business opportunities for demand side management service provider or aggregator. The aggregator act as a third party between the electricity supply system and the consumers, and facilitate consumers to actively participate in Demand Side Management (DSM) by bidding price against power reduction with some constraints. This work develops a novel algorithm for aggregated demand response for smart distribution network. Simulations are carried out which identify the demand reduction bids and consumer constraints. The simulation results of the proposed algorithm demonstrate the potential impact of an aggregated demand response on the power system.

A Compendium of Performance Metrics, Pricing Schemes, Optimization Objectives, and Solution Methodologies of Demand Side Management for the Smart Grid

“…Various DSM schemes have been utilized to manage consumer load. A dynamic programming based DSM scheme was suggested by the authors of [89,109]. In this algorithm, the consumer's profit is maximized and the overall cost of production by using the smart distributed network is minimized.…”

“…Maximizes the consumers' payoff by improving the economic efficiency of the residential consumption [77] Maximizes the welfare of consumers [89] Maximizes consumers profit [93] PAPR reduces [95] Minimizes the operation cost [98] Reduces the consumers' electricity expenses [112] Cost and PAPR reduction Minimizes consumers' bills by up to 25% [76] Electricity bill reduction Minimizes the waiting time of the appliances [113] Minimizes consumers' electricity consumption [81] The total generation cost is minimized at the Nash equilibrium point [86] Reduces the bills by up to 22% [91] Minimizes the cost of energy [87] Electricity cost reduction Minimizes the total average cost of electricity of all consumers [114] Electricity cost reduction and stabilization of the load profile Minimizes electricity consumption of all consumers [115] Generation cost and PAPR minimization Minimizes the consumers' energy costs [62] Maximization of the overall utility Satisfies the budget limits [80] Maximization of the welfare of consumers Minimizes transmission losses [96] Maximization of the generation Maximizes the generation capacity [116] Maximization of the social welfare Minimizes the electricity costs which, in turn, maximizes the welfare [117] Maximization of the consumer profit Minimizes the consumers' electricity bills [118] Minimization of the generation cost Reduces the generation cost and demand during peak hours which flattens the demanded load profile [92] Minimization of the generation cost and demand during peak hours…”