Demand side management with consumer clusters in cyber‐physical smart distribution system considering price‐based and reward‐based scheduling programs

Abstract

This study presents a demand side management (DSM) strategy for a cyber-physical smart distribution system (CPSDS). The proposed approach uses the price-based as well as reward-based DSM schemes as a part dual objective function. The objectives of the proposed scheduling approach comprise the profit maximisation objectives of demand response aggregator agent (DRAA) and network performance objectives of the distribution system operation agent. The same are achieved by providing incentives to the participating customers. The incentive information is communicated to responsive load agent (RLA) using cyber infrastructure (communication channels, sensors and cloud storage systems) and thus allowing customers to select the incentive program of their own choice as per their flexibility. The real-time implementation of the program is considered to have direct load control based once the event trigger acknowledgement is received by DRAA/utility from RLA for control action on responsive loads. The proposed price-based and reward-based DSM framework in CPSDS is evaluated using IEEE 37 bus test system. The simulation results of proposed dual objective price-based and reward-based mechanism are presented, discussed and compared with single objective price-based approach. The same demonstrates the improved tradeoff between techno-economic aspects of distribution system operation.