Cost-Centric Energy Management of a Test Grid System Considering Load Flexibility for DSM

Abstract

Demand-Side Management (DSM) adjusts load demand by rebuilding the load demand model of a distribution system and thus reduces operating costs. One potential approach to achieving cost savings is the redistribution of flexible loads to time periods characterized by lower utility expenses per unit, or alternatively, the elimination of nonessential loads. The primary objective of this research is to examine the use of DSM approaches in the scheduling of domestic appliances. The aim is to effectively minimize operating expenditures, the peak-to-average demand ratio (PADR), and any associated problems. Domestic appliances may be categorized into three distinct types based on their ability to adjust to variations in time, temperature, and light: time-flexible, temperature-flexible, and light-flexible. The second step of the study focuses on modelling the power consumption scheduling issue for demand-side clients. This is done by including operating cost priorities and modes of operation while taking into account both demand and supply factors. This research optimizes an IEEE 33 bus test grid system using load scheduling, fossil fuel generators, and renewable energy. The primary objective of this optimization is to minimize operating costs. In order to optimize the load model, it was necessary to restructure it according to the DSM participation level. After considering the restructured load demand models, distributed load scheduling ideas are disseminated to reduce test grid system power distribution costs.