Abstract
Distributed energy resources installed in the residential areas enable energy consumers to participate in the demand response of distribution systems. In the literature, the algorithms used for the decision-making process of an energy consumer are often centralized and require a dedicated communication link with the power utility. In this paper, a novel decision-making algorithm known as the auction decision process has been proposed. It helps energy consumers to independently meet the demand response in a decentralized manner. The resultant demand response operates in a distributed manner, where the limited information is transmitted among the neighboring consumers using the short-range ZigBee communication. This minimizes the required initial bulk investment for a power utility compared to using a centralized communication system. The data privacy is also improved when compared to the centralized approach. For this work, finding a path with the least transmission loss is selected as the desired constraint for the decision-making process of the demand response. The proposed method has been demonstrated using the IEEE 33 bus systems.
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