Demand Side Management in Smart Grid

Abstract

Smart grid is a bidirectional electric and communication network which includes various energy and operational devices including smart accessories, smart meters, nonconventional energy resources and energy-saving devices. Through two-way digital communication, it is used to supply electricity to consumers and domestic purposes. Smart grid technologies are enforced in India in order to reduce transmission and distribution losses. Demand side management is an important function of a smart grid and it helps to deduce the utilization costs of electricity. It allows energy suppliers to reduce peak load demand. The method which is proposed composed of modern system identification and it enables the user to schedule their loads. This potentially balances both supply side and demand side in order to make the system more efficient. However, due to lack of proper coordination among the agents, it may cause significant peaks in demand, which will in turn reduce efficiency of overall system. In order to correlate the agents in a decentralized manner, we are introducing a mechanism of decentralized demand side management (DDSM) in smart grid. Peak demand of domestic customers in the grid can be reduced through proper coordination among customers.