Reward-Based DSM Program for Residential Electrical Loads in Smart Grid

Abstract

There is a positive attitude towards the use of different strategies for engaging in demand response (DR) programs in energy markets through the innovation and trend of smart grid technologies. In this paper, a reward-based approach is proposed that enhances the involvement of customers in the DR program by assuring the customer's comfort level. Most of the previous works considered limited controllable loads like thermal loads for demand side management (DSM). In this approach thermal and all active electrical loads are considered for the analysis. Comfort indicator is used for the analysis which is an important parameter for measuring comfort of each resident. This technique significantly reduces the utility reward cost and maximizes the user satisfaction level compared with existing approach. The numerical example considered in this work illustrates the fruitfulness of the proposed approach. This problem is formulated as mixed-integer linear programming (MILP) and solved by using CPLEX solver in General Algebraic Modelling Software (GAMS).